The fifth issue of the AIER Sound Money Project Working Paper Series is available online. AIER is currently ranked 152nd on SSRN's Top 1,600 Entrepreneurship Research & Policy Network Organizations..
Sound Money Project
There are two reasons monetary policy cooperation might backfire.
The high price of bitcoin serves as a reminder of its rigid supply, which might ultimately be its undoing.
In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in the context of the 2008 crisis.
Contra Mises, explicit coordination might be used to launch an intrinsically worthless item. Such a view is in line with standard models of money employed by economists today. Coordination also seems to have played a role in launching bitcoin.
The Federal Reserve’s (Fed) and European Central Bank’s (ECB) policy responses to the recent financial disasters offer two tales of unintended consequences.