Monetary Policy

Wednesday, May 15th, 2019

Some claim that, over the last decade, tight monetary policy slowed down what would otherwise have been a rather speedy recovery. Can that possibly be right?

Tuesday, May 14th, 2019

A monetary rule would provide guidance and stability. But monetary rules are not incentive-compatible for monetary policy makers.

Tuesday, April 2nd, 2019

MMT in the colonial period often led to periods of ruinous inflation and, less well-understood, revolution-inducing deflation.

Wednesday, March 27th, 2019

What does the Austrian theory of the trade cycle have to do with Gordon Ramsay? Plenty.

Tuesday, February 26th, 2019

How the strange funding scheme behind the Green New Deal rejects the scientific foundations of economics

Wednesday, January 23rd, 2019

We rely on competitive markets to supply us with “correct” quantities of goods and services ranging in importance from chewing gum to industrial chemicals, and from pedicures to petroleum. So why do we not rely on competitive markets to supply us with the “correct” quantity of money?

Wednesday, January 9th, 2019

Argentina has secured an IMF agreement and announced aggressive policies to reduce its fiscal deficit and inflation rate. But that might not be enough to comfort its creditors.

Tuesday, December 18th, 2018

Argentina has seen a series of currency crises as an excessive reaction to international events and changes in market conditions in the last few months. Argentine monetary policy is largely to blame.

Wednesday, November 28th, 2018

Paul Volcker takes issue with the Federal Reserve’s two-percent inflation target. He is right to do so.

Tuesday, November 27th, 2018

The Divisia monetary aggregates suggest that the equation of exchange is still a useful apparatus for monetary policy.

Friday, November 23rd, 2018

The combined effort of the central banks of the United States, Japan, and Europe to “stimulate” their economies has initiated an asset price bubble.

Monday, October 29th, 2018

A new NBER working paper considers how actions in the federal funds market affect stock prices and trade volume.

Tuesday, October 9th, 2018

By continuing its policy of paying interest on excess reserves, the Federal Reserve is courting a crisis.

Tuesday, October 2nd, 2018

The essence of economics is far too complex to accredit to a politician.

Wednesday, September 26th, 2018

The Federal Reserve has created so much base money that it has found itself between the devil and the deep sea: choosing whether to let the money circulate in the economy, thereby pushing up prices, or to remove this money quickly, thereby potentially creating a deflationary spiral.

Wednesday, September 19th, 2018

Does the experience of the Bernanke Fed demonstrate that monetary policy is ineffective at the zero lower bound? Absolutely not.

Wednesday, August 29th, 2018

Money is not just what the government says it is. The market has been struggling to create alternatives for a very long time.

Monday, August 27th, 2018

Trump’s trade war is heating up. How can the Fed ensure it doesn’t cool down our economy too much?

Thursday, August 23rd, 2018

Would a self-governing society ever choose to delegate the broad monetary, financial, and regulatory powers now enjoyed by central banks?

Wednesday, August 22nd, 2018

Weaponizing one’s influence over expectations can certainly shake up a political scene. But it also serves to shake markets, the source of material prosperity.