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

Addressing Financial Exclusion: The Right Way and the Wrong Way

“Marginalized groups of people are more than capable of succeeding when you just get out of the way. Policymakers today must understand the devastating consequences of well-intentioned policies and the hard fact that an imperfect private sector response is far preferable to a counterproductive government response.” ~ Ethan Yang

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