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.
Research Publications for Monetary Economics
Central bank independence and the Federal Reserve’s new operating regime
JL Jordan, WJ Luther
The Quarterly Review of Economics and Finance 84, 510-515, 2022
Seigniorage payments and the Federal Reserve’s new operating regime
BP Cutsinger, WJ Luther
Economics Letters 220, 110880, 2022
Book Review: Money and the Rule of Law: Generality and Predictability in Monetary Institutions
PC Earle
Quarterly Journal of Austrian Economics 24 (4), 2022
Cash, crime, and cryptocurrencies
JR Hendrickson, WJ Luther
The Quarterly Review of Economics and Finance 85, 200-207, 2022
War, money & economy: Inflation and production in the Fed and pre-Fed periods
TL Hogan, DJ Smith
The Review of Austrian Economics, 1-23, 2022
Articles
What the Heck Is Bitcoin All About?
“Peter C. Earle, senior fellow at AIER joins Aleksandra Przegalinska for a conversation on the unknowns of bitcoin, crypto currency and blockchain technologies in the modern era.” ~ AIER
Are Tax Increases Popular?
“Voters seem to be on the right side on the big-picture question of ‘Should taxes be higher?’, but if they think tax increases are going to happen, it’s quite likely that they will support the most economically damaging types of class-warfare levies.” ~ Daniel J. Mitchell
Lift Your Gaze, Please: the April Inflation Overshoot is Not the Problem
“A betting man, if he wants to remain a betting man, updates his priors. So, I side with Jason Bloom at the asset manager Invesco: ‘There is so much dislocation in the economy from the reopening and base effects from a year ago that it will take at least six to 12 months before we get a clear view of the underlying inflation trend.’ I will make a different sort of prediction, though: no matter what the future holds, the Chickens will be there to squawk about it.” ~ Joakim Book
Monetary Inflation’s Game of Hide-and-Seek
“Whether the CPI records a higher or a lower rate of general price inflation, the more deleterious effects resulting from monetary inflation are those relative price and wage distortions, and resource, labor and capital misallocations and misdirection, that are hidden beneath the ‘surface’ of the general price level, but nonetheless set in motion the phases and consequences of the business cycle.” ~ Richard M. Ebeling
War Of Words Over Inflation Stirs Questions for the Fed
“Does it make sense, for a nation founded on the notion of individual liberty, equality under the law, and personal property rights, to allow a government agency to manipulate the value of the currency used by its citizens? Would it be better to have a stable monetary foundation to facilitate free-market outcomes, rather than empower the Federal Reserve to distort interest rates and dilute dollars in the service of government policy?” ~ Judy Shelton
There Is No Avoiding the Long Run: A Low Interest Rate Environment Is a Low Growth Environment
“We’ve trod down the post-Bernanke path long enough to learn that the cost of following a policy of resource allocation by the Federal Reserve instead of allowing a modestly higher rate of inflation is lower growth of real income.” ~ James L. Caton