Negative Nominal Interest Rates: Just Say No

– December 24, 2019

Not willing to let a terrible proposal die, President Trump has reiterated his suggestion that the United States would be better off with negative nominal interest rates. In a line that generated laughter, he said, “Many [in the eurozone] are actually …


How Everyone Messes Up at Once: Austrian Business Cycle Theory, Summarized

– December 20, 2019

If markets are so great, why do we have business cycles?


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 …


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 …


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 …


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 …


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 …


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.


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


Why the Moral Panic Over the Libra? (Video)

– October 24, 2019

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


The Fed Should Not Paper Over the President’s Policy Errors

– October 11, 2019

Printing money cannot dry up a flood or produce more rainfall in a drought. And it cannot fix the very real problems that result from a trade war.


Federal Reserve’s “Independence” Masquerade

– October 10, 2019

Chairman Powell’s ideal operating environment most likely looks the same as every other Fed chair’s operating environment: one where the Fed is left alone to treat the economy like a Lego set.