Fedophilia: The Intellectual Disease and Cure

– February 14, 2020

When most monetary economists talk about the virtues of this or that central bank, they’re mostly talking through their hats, because they haven’t a clue concerning what other institutions might be present, and what they might be up to if the central bank wasn’t there.

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The Fed’s Confusing New Tools (Video)

– February 13, 2020

Preparing for my appearance on Boom Bust this week, I found essays from the Sound Money Project to be invaluable. These economists understand the mechanics of Fed policy extremely well, and write about it in real time at AIER.org. Reading these essays …

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The Overnight Lending Intervention That Wasn’t

– February 8, 2020

Recent intervention in the overnight lending market is not precisely an intervention. In some ways, it is a dis-intervention. Viewed in terms of the net effect of activity by the Federal Reserve, the recent accumulation of repurchase agreements has onl …

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Federal Reserve as Risk Regulator: An Impossible Task

– February 7, 2020

How big are the costs of various possible regulations applied to leveraged loans? No one knows. The balancing act of simply regulating leveraged loans requires knowledge that simply is not available to the Federal Reserve Board.

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Some Questions Regarding the FedNow Project

– December 19, 2019

The Federal Reserve has announced its commitment to developing its own round-the-clock real-time payments service. The FedNow Service promises to clear a transfer between U.S. banks in mere seconds — 24 hours a day, 7 days per week. At face value, this …

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Paul Volcker: Foe of the Gold Standard, Fan of Fiscal Profligacy

– December 10, 2019

The recent death of Paul Volcker, Federal Reserve Chairman from 1979 to 1987, has generated the usual but undeserved encomiums from media outlets. Sebastian Mallaby at The Washington Post declares that Mr. Volcker was “the savior our economy …

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Richard Nixon & the Myth of Independent Fed Policy (Video)

– December 6, 2019

Amity R. Shlaes presents “On the Legacy of American economist and former Chair of the US Federal Reserve, Arthur Burns, during the Keynesian Revolution” at the American Institute for Economic Research Annual Meeting of Voting Members 2019. Current Chai …

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The Impossibility of Negative Rates

– December 5, 2019

The economics discussion would be greatly enhanced if it were better understood that underlying all spending, selling, saving, lending, borrowing, and investing is an exchange of products, services or labor. Real things are always and everywhere being …

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Don’t Hand Over Your Money to Uncompetitive Banks

– November 21, 2019

Having lived abroad for most of the last seven years, I am painfully aware of the challenges that emerge from having incomes, assets, and costs in different currencies. Sometimes that yields you unexpected windfalls, like when the British pound (GBP) b …

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Hidden Intervention: Political Motivations Driving Fed Policy

– November 8, 2019

The Federal Reserve is subsidizing the Treasury. The apparent trouble in overnight markets appears to have provided an excuse to quietly reengage in the now decade-old program of support.

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LIBOR Is Out, SOFR Is in: What It Means

– October 30, 2019

That the LIBOR fixings were manipulated was an open secret among financial market participants stretching back to the late 1980s

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Why the Moral Panic Over the Libra? (Video)

– October 24, 2019

When Facebook proposed the Libra, however, moral panic swept Washington.

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