The Decentralization Fetish

– June 21, 2021

“We must not merely assume that decentralization is always good and more-decentralized solutions are always better. Instead, we should recognize that it depends on the unique benefits of decentralization and the costs of realizing those benefits relative to more-centralized alternatives.” ~ William J. Luther


Did the Fed Just Raise Interest Rates?

– June 20, 2021

“In the Fed’s current floor system, the rate of IOR is the key tool of monetary policy. If the Fed raised the rate of IOR, then it raised interest rates.” ~ Thomas L. Hogan


This Claim of Market Failure Deserves No Credit

– June 15, 2021

“If you who claim to identify a market failure could, but don’t, voluntarily put your own money where your mouth is in an attempt to address that alleged failure, why should anyone listen to your pleas for government to coercively put other people’s money where your mouth is?” ~ Donald J. Boudreaux


Sound Money Still Matters

– June 7, 2021

“By making precious metals a more integral part of citizens’ lives, state gold depositories are key to a return to sound money.” ~ Peter C. Earle


Is the Fed Paying Banks Not to Lend?

– June 6, 2021

“The evidence shows that banks treated excess reserves as a profitable alternative to loans. High rates of IOER caused them to increase reserve holdings and decrease their loan allocations. The Fed was indeed paying banks not to lend.” ~ Thomas L. Hogan


When Crowds Go Mad

– June 3, 2021

“Much like his role model’s chief literary achievement, all is not well in this otherwise highly enjoyable book. Bernstein often resorts to simplified and unproved evolutionary just-so stories to account for the lunacy he colorfully describes.” ~ Joakim Book


The Backward-Looking Storyteller

– May 27, 2021

“History is slow, with fascinating moments and events scattered among tons and tons of mundane and inconsequential things. When we select some of them and weave them into an iconic story, we often make a mockery of the past – and ourselves a disservice.” ~ Joakim Book


Pocket Monsters Meet Animal Spirits

– May 24, 2021

“Lockdowns, boredom, and fiscal largesse sparked the incredible rise in Pokémon card values. But the Greater Fool Theory may already be at work.” ~ Peter C. Earle


Lift Your Gaze, Please: the April Inflation Overshoot is Not the Problem

– May 18, 2021

“A betting man, if he wants to remain a betting man, updates his priors. So, I side with Jason Bloom at the asset manager Invesco: ‘There is so much dislocation in the economy from the reopening and base effects from a year ago that it will take at least six to 12 months before we get a clear view of the underlying inflation trend.’ I will make a different sort of prediction, though: no matter what the future holds, the Chickens will be there to squawk about it.” ~ Joakim Book


To Lean, Clean, or Reign Supreme

– May 16, 2021

“After a decade or more of economic and financial events that put central banks under heavy strain – financial collapse, a slow and timid recovery, the pandemic – strange things are again amiss in financial markets. Broda and Druckenmiller are right to say that ‘the Fed seems to be fighting the last battle.’ Ironically, so are they: we’re back in the lean-or-clean debate of twenty years ago.” ~ Joakim Book


War Of Words Over Inflation Stirs Questions for the Fed

– May 15, 2021

“Does it make sense, for a nation founded on the notion of individual liberty, equality under the law, and personal property rights, to allow a government agency to manipulate the value of the currency used by its citizens? Would it be better to have a stable monetary foundation to facilitate free-market outcomes, rather than empower the Federal Reserve to distort interest rates and dilute dollars in the service of government policy?” ~ Judy Shelton


The Lumber Market Delirium

– May 11, 2021

“A sordid cocktail of Covid lockdowns and expansionary monetary policy have led to explosive conditions in long-docile lumber markets.” ~ Peter C. Earle