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

This Claim of Market Failure Deserves No Credit

“If you who claim to identify a market failure could, but don’t, voluntarily put your own money where your mouth is in an attempt to address that alleged failure, why should anyone listen to your pleas for government to coercively put other people’s money where your mouth is?” ~ Donald J. Boudreaux

Where Economics and Management Studies Overlap: A Brief Review of Austrian Perspectives on Entrepreneurship, Strategy, and Organization

“Elements is a good refresher for people who haven’t thought about it in a while, and I think it’s also a good jumping-off point for teachers looking to organize lectures and classroom activities. Yes, markets tend toward equilibrium, but this Element points us to the journey, and that’s where all the entrepreneurial action is.” ~ Art Carden

Problems of Federal Reserve Policy—and How to Solve Them

“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?

“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?

“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

“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