ECB: On the Credit Wave towards Zombification

– August 17, 2020

“As in the planned economies, negative productivity gains and painful prosperity losses will be unavoidable. Because productivity gains are the basis for real wage increases, the benign long-term credit conditions of the ECB increasingly become a burden for the young people in Europe.” ~ Gunther Schnabl & Nils Sonnerberg


More Stimulus Checks: An Expensive Political Stunt

– August 15, 2020

“Adding $400 a week to unemployment benefits would clearly be more than enough. When it comes to Economic Impact Payments the economically optimal amount is zero.” ~ Alan Reynolds

money printer

What Did the “Stimulus Plan” Stimulate?

– August 10, 2020

“The only conceivable rationale for repeating the latest of many failed experiments with fiscal stimulus (borrowing from Peter to pay Paul) might be to ‘stimulate demand.’ But we just tried that. It didn’t work. It never works.” ~ Alan Reynolds

steve mnuchin

Government Can’t Police Itself

– August 8, 2020

“I will always support more transparency and more oversight, if only because doing so is part of my job and makes that job easier– one of which I’m proud. But intoning ‘more transparency’ is no silver bullet for shrinking the size of government and for getting rid of bad programs. The only ‘substantive’ result of such proclamations is that they provide Congress a rationale for holding ever-more pointless hearings.” ~ Veronique de Rugy

money burning

Modern Monetary Theory is Playing With Fire

– August 8, 2020

“Stephanie Kelton’s book is well-written and serves as an accessible insight into the world of Modern Monetary Theory. There are parts of the book that are essential pieces of economic knowledge that define the modern state, some that are questionable premises, and some that are blatant political talking points.” ~ Ethan Yang

gold money

Judy Shelton is Right About the Gold Standard

– August 7, 2020

“When it comes to the gold standard, the experts have spent too much time reading their textbooks and not enough time studying actual history. Empirical questions require empirical answers, and no amount of armchair theorizing can settle how gold stacks up to fiat money. On this, Dr. Shelton is right and the commentariat wrong.” ~ Alexander W. Salter


The Fiscal Centralization of Europe Will Not End Well

– August 5, 2020

“Europe may be experiencing a ‘Hamiltonian moment,’ but the path towards a federal Europe will remain both long and tortuous. Political opposition to the European experiment has been growing as the perceived costs of membership of the EU begins to eclipse the benefits for some members of the Union.” ~ Colin Lloyd

Jerome Powell

Powell Must Choose: Fiscal Restraint or Runaway Inflation

– August 5, 2020

“Jerome Powell and those steering fiscal policy choose from two paths: fiscal responsibility or monetary debasement. If he is unable to maintain stable expectations of low inflation, the latter path awaits.” ~ James L. Caton

federal reserve in the fall

The Fiscal Fed

– August 4, 2020

“Allowing the Fed to become a catch-all institution undermines its independence and ability to conduct monetary policy. If every job is the Fed’s job, it won’t do any of them well.” ~ Nicolás Cachanosky

Ben Bernanke

Long-Discredited Positions on the Monetary System

– July 31, 2020

“Considering the evidence, it appears to be Mr. Rattner, rather than Ms. Shelton, who holds “long-discredited positions on the monetary system.” Historical bank failures and crises, particularly during the Great Depression, are generally attributable to interference by regulators and central bankers, not to the gold standard.” ~ Thomas L. Hogan

fed building dc

Inflation, Credit Allocation, and the Fed

– July 31, 2020

“At the behest of Congress, the Fed has opened new facilities far afield of its traditional mandate. There is still some risk that the Fed will lose control and inflation will get out of hand. But there is a much bigger risk that the Fed will misallocate credit, reducing long run economic growth in the process.” ~ James L. Caton

fed facade

The Federal Reserve Is Both Too Politicized and Too Powerful

– July 30, 2020

“If we don’t want history to remember COVID-19 as the event that cemented political control over monetary policy, we need to act soon. The Fed’s emergency programs must be halted and eventually retired; its balance sheet must shrink to pre-crisis levels; and Congress must cease directing the Fed to engage in fiscal policy, even amidst extraordinary economic turmoil.” ~ Alexander W. Salter