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Interest Rates, Funny Money, and Economic Malaise

– April 3, 2019

There is growing support for the idea that meddling with market interest rates is a bad idea. Interest rates coordinate intertemporal production plans, and any attempt to alter them will entail undesirable unintended consequences. 

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Quantitative Easing: A Model for Financing Government Spending?

– April 3, 2019

Government expenditures can be funded by increasing reserves at the Federal Reserve. But limits on the demand for reserves mean inflation will follow.

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What Makes Stephen Moore Unqualified?

– March 29, 2019

The problem with Moore is not that he doesn’t have a Ph.D. The problem is that he is less like Alan Greenspan, and more like Arthur Burns.

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Should Everyone Have An Account At The Fed?

– March 27, 2019

Some scholars argue that ordinary citizens should be allowed to open bank accounts at the Fed. Is this the best way to reduce financial exclusion?

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The Trouble With Stephen Moore

– March 25, 2019

The Fed could be much better than it is. But it could also be much worse. Adding Stephen Moore to the Board of Governors would be a step in the wrong direction.

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Money as an Evolving Social Contract

– March 15, 2019

Control over money is the legal privilege of the monetary authority. But the monetary authority is not above reproach.

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The Federal Reserve: A Failure of the Rule of Law

– March 12, 2019

The Fed has a monopoly on the creation of base money, the fundamental asset underlying the banking and financial system. And over decades, with each instance of financial turbulence, the Fed has become less constrained in how, when, and why it creates base money.

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Three Things You Should Know About the Great Recession

– March 5, 2019

The Great Recession of the 2000s shaped a generation of macro- and monetary economists. We can debate the details. But three things warrant widespread agreement.

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A Failure to Communicate

– February 12, 2019

Central banking should be boring. Surprises in the stance of monetary policy are almost always a bad thing. The best thing a central bank can do to achieve macroeconomic stability is to be very open about its future intended policies.

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Powell’s Game Plan

– January 17, 2019

Chairman Powell’s track record suggests that he has a grasp on fundamentals and that he is dedicated to reversing a decade of monetary imbalance.

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Should Central Banks Lock Out Non-Bank Payment Providers?

– January 10, 2019

That one set of payments providers gets access to the core payments system while another is shut out seems quite arbitrary.

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The Fed is Hostile to a Self-Governing Society

– January 9, 2019

While it is appropriate for monetary policy to be removed from active political interference, it does not follow that monetary policy ought not be judged according to democratic standards.

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