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.


Monetary Policy Since the Great Recession

“The U.S. economy has now entered unexplored territory, though this territory has unhappy similarities with Revolutionary-era hyperinflation, Civil War inflation of the 1860s, and the stagflation of the 1970s. None of these historical experiences were something anybody would want to relive.” ~ Robert F. Mulligan

The Asymmetry of Bitcoin Scams Is All Very Sad

“When losses come from risk-taking for which you stood to benefit, it’s not sad if you happened to lose. That was a possible outcome, and whether you properly understood it or not is beside the point. With Skin in the Game, there’s nothing sad about making losses.” ~ Joakim Book

Will Cash Soon Be Obsolete?

“Perhaps these trends will reverse. But it seems more likely that the reports of the forthcoming death of cash have been greatly exaggerated––that is, so long as the government doesn’t kill it.” ~ William J. Luther

What Do Wildcat Banks Tell Us About Stablecoins?

“The experience in Michigan when it was a frontier state in the same year that the telegraph was invented is not particularly pertinent for discerning the likely success of private currency with the communications technology available today. ‘Wildcat’ is a phrase that has no relevance for stablecoins.” ~ Gerald P Dwyer

Why is Monetary Policy Focusing on the Overnight Lending Market?

“Borrowing in the overnight lending market allows for the Federal Reserve to access a larger pool of funds from a diversity of financial institutions. As a result, the Fed can borrow these funds at lower rates and avoid attracting negative attention that would be generated by an increase in the interest rate target and the interest rate paid on reserves.” ~ James L. Caton

Understanding the Covid-19 Recession

“National debt ballooned together with the Fed’s balance sheet even before the pandemic hit, and once it did we’ve been spending with unprecedented recklessness for relief, recovery, and even supposed infrastructure expansion. Spending this wealth that has yet to be created guarantees, not just future inflation, but a future recession.” ~ Robert F. Mulligan