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

Jerome Powell’s Quest for Economic Stability is Destabilizing

“By trying to pursue their declared goals through the monetary and interest rate policy tools at their disposal, they are, in fact, continuing to imbalance and wrongly ‘twist’ the real economy in ways that will result in instability.” ~ Richard M. Ebeling

Lessons from the Financial Instability Hypothesis

“The Covid-19 recession was not triggered by financial causes, but the ballooning government debt the U.S. is currently pursuing, recklessly and with a vengeance, can only substitute a new unsustainable expansion for a sustainable recovery.” ~ Robert F. Mulligan

After Lockdown

“Risks remain and the prospects for the global economy after lockdown remain uncertain. Honest valuation remains difficult when markets are so hampered. The next decade is likely to favour the tactical investor.” ~ Colin Lloyd

How Does the Federal Reserve Evaluate Policy?

“If inflation does not relent in approaching months, this call for a modest tightening will likely develop support from other ranking members of the Fed. I’m willing to bet that support for tightening will be strongly correlated with the value of the loss function presented here.” ~ James L. Caton

The Great Inflation Debate Is Missing Why Inflation Matters

“The public debate over inflation is a great opportunity to focus on what really matters: subjecting monetary policymakers to the rule of law. Unfortunately, we’re currently squandering that opportunity to repeat pop-macroeconomic fallacies.” ~ Alexander W. Salter