Topic: Sound Banking

Central Banking, Monetary Policy, Sound Banking, Sound Money Project

Central Bankers, Let the Price System Work!

– July 26, 2023

“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter

Currency, Inflation, Sound Banking

Who Bears the Burden of Dollars’ Falling Purchasing Power?

– August 4, 2020

“Inflation is not a one-trick pony, with an easily predictable outcome. Rather, it does several things at the same time. Looking at claims like the eradication of a dollar’s purchasing power is misleading: it is not the case that inflation has ripped off savers by eradicating 97% of their savings’ worth.” ~ Joakim Book

Central Banking, Policy, Sound Banking

The Fed Is Not Independent, But It Should Be

– June 19, 2020

“To be an effective central bank, the Fed must strive to remain independent of short-term political influence. A strict separation of monetary and fiscal policies helps bolster central bank independence.” ~ Thomas L. Hogan

Crisis, Economic Theory, Fiscal Policy, Philosophy, Policy, Sound Banking

Free Down Payments and Subsidized Mortgages are Not Social Justice

– June 11, 2020

“Despite 50 years of debacles, politicians are still glorified for pretending that free downpayments and subsidized mortgages are “magic beans” that multiply social justice in America.” ~ James Bovard

Free Banking, Sound Banking

Banking the Unbanked: Lessons from the Developing World

– February 29, 2020

Access to financial services, or “financial inclusion,” has long been recognized as a critical step towards escaping poverty. Having a bank account enables people to protect their savings, diversify risk, lower transaction costs and access credit …

Sound Banking

When Did the Bank of England Become a Lender of Last Resort?

– June 11, 2019

It happened sometime after the crisis of 1847.

Sound Banking

Narrow Banks, Very Narrow Banks, and the Federal Reserve

– May 31, 2019

A bank charter has been granted to The Narrow Bank in Connecticut. But the idea of narrow banking is not new.

Sound Banking, Sound Money Project

Sound Money Project Essay Contest

– May 26, 2019

What are the merits of returning to the gold standard? Is such a system feasible today?

Regulation, Sound Banking

The Costs of Dodd-Frank

– May 12, 2019

The jury is still out on whether Dodd-Frank has made the financial system more robust. But we are starting to get a clearer picture of what impact it has had on compliance cost, bank lending, and bank consolidation.