Monetary Policy

Monday, July 1st, 2019

It’s the countries most open to the world’s plenty, including plenty produced in countries that allegedly “cheat” when it comes to trade, that are the most prosperous.

Monday, June 24th, 2019

In times past the monetary authorities confined these sorts of stringent measures to war-time. Perhaps they should stay that way.

Monday, June 24th, 2019

The Libra has the potential to mark the start of something because if widely used, it will open the eyes of the global population to a truth about money: it works best when its value is stable, plus it needn’t be a government creation. 

Monday, June 17th, 2019

If a government manages to undervalue its currency in terms of foreign currencies, it subsidizes the consumption of foreigners who purchase its country’s exports. And while gains are reaped by those of its citizens who work to supply goods for export, currency undervaluation makes most of that country’s citizens poorer.

Tuesday, June 11th, 2019

If there is a bright spot to the tariff war, it’s that the Fed has definitively exposed itself as a political body, less interested in economic growth than serving the interests of power.

Monday, June 10th, 2019

Fed Chair Jerome Powell has suggested that Federal Reserve policy might not tighten as much as anticipated. He has also changed the regime that dominated the last decade of monetary policy.

Friday, May 31st, 2019

To reduce inflation and keep the Argentine peso stable going forward, the Macri administration adopted an inflation-targeting regime. But, just 26 months after its implementation in September 2016, the inflation-targeting regime had failed. What went wrong?

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.

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