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

El Salvador’s Bitcoin Introduction Hits Early Snags

“Other nations would be well advised to use El Salvador’s missteps as a guide for their own such attempts. And to suffuse their embrace of crypto beyond considerations of technology, observing its fundamentally libertarian spirit as well.” ~ Peter C. Earle

Government Opposition to Bitcoin

“Government obstacles to widespread adoption take many forms, from mere transaction policy to outright bans on alternatives while providing close substitutes in the form of central bank digital currencies.” ~ William J. Luther

Bitcoin and the Network Effects Problem

“There are steps entrepreneurs can take to help reduce the network effects problem. It is, nonetheless, an obstacle bitcoin must overcome to achieve widespread adoption.” ~ William J. Luther

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