Monetary Economics

Monetary policy influences inflation, employment, and economic activity. A stable but dynamic monetary system is vital for supporting economic growth, individual liberty, and a prosperous society. Therefore, we examine the causes and consequences of monetary policy (including inflation), identify ideal and practical steps towards a better monetary policy regime, and look at monetary alternatives and financial regulation.

Articles

Problems of Federal Reserve Policy—and How to Solve Them

Thomas L. Hogan June 8, 2021

“To stabilize the economy, informed citizens must study the faults of discretionary central banking and call for reforms to protect against them. ‘Money and the Rule of Law’ accomplishes the first goal. The second is up to us.” ~ Thomas L. Hogan

Is the Fed Paying Banks Not to Lend?

Thomas L. Hogan June 6, 2021

“The evidence shows that banks treated excess reserves as a profitable alternative to loans. High rates of IOER caused them to increase reserve holdings and decrease their loan allocations. The Fed was indeed paying banks not to lend.” ~ Thomas L. Hogan

Why Do Inflation Expectations Matter?

James L. Caton June 3, 2021

“Powell is telegraphing to the market that he hears their concerns about inflation. We will have to wait through the next several months to learn whether or not investors will be convinced.” ~ James L. Caton

You Cannot Eat Bitcoin

Joakim Book May 31, 2021

“You cannot eat bitcoin, or dollars, or bank balances, which means that whatever vehicle you use to move value across time has an exchange rate risk. Many bitcoiners’ mistake is to think that their preferred asset avoids this; Taleb’s mistake is to think that others can have a different view of government than him.” ~ Joakim Book

Argentina’s Creative Approaches to Debt Write Offs

Gunther Schnabl May 30, 2021

“Whereas some private vulture funds found brutal means to achieve full repayment on their assets, international public institutions such as the IMF were repeatedly willing to take over the risk. This leniency may be due to the fact that the international taxpayers seem unaware of the burdens. It has to be seen which strategies will be observed in the future in the industrialized countries.” ~ Gunther Schnabl & Nils Sonnenberg

Fighting Ransomware Doesn’t Require Banning Cryptocurrency

J.P. Koning May 29, 2021

“With OFAC as coxswain, an embargo might achieve everything that a ban on cryptocurrency promises to achieve without depriving gamblers, outsiders, and hobbyists of a product they utilize. It would also be more effective than the status quo, which is not capable of stopping criminals who operate with impunity from noncompliant jurisdictions.” ~ J.P. Koning