Paul Volcker takes issue with the Federal Reserve’s two-percent inflation target. He is right to do so.
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.
Money is not just what the government says it is. The market has been struggling to create alternatives for a very long time.
Would a self-governing society ever choose to delegate the broad monetary, financial, and regulatory powers now enjoyed by central banks?
The consequences of proposed exit strategies deserve serious attention. Schnabl’s work is a step in the right direction.
Despite Japan's perfect Keynesian-textbook policy making, the economy has not revived. As a legacy of the policies, the Japanese government debt has grown to a dimension rarely reached outside of times of war.
Nearly 10 years after QE1 began, economists and pundits continue to ask whether the Fed’s expansionary monetary policy was effective. Instead, they should consider whether the Fed actually engaged in expansionary monetary policy.
George Selgin speaks at the American Institute for Economic Research, July 28, 2018.