Monday, 11 December 2017

Monthly Archives November 2014

Unconventional monetary policy: not all assets are created equal

Posted by William Luther
November 26, 2014
in Blog

In a recent post, I considered whether the Fed’s massive expansion of the monetary base is unconventional. It is certainly unprecedented. Nonetheless, I concluded that it was business as usual: the Fed expanded the base as it always has, by purchasing assets. Today, I will explore one of the ways in which recent Fed policy […]

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Should ‘Legal But Shady’ Be A New Regulatory Standard?

November 25, 2014
in Blog

The following is an excerpt from Heritage Foundation Research Fellow Norbert Michel’s recent piece in Forbes: Last Friday I had the pleasure of testifying at a Senate hearing. The topic was “Improving Financial Institution Supervision: Examining and Addressing Regulatory Capture.” “Regulatory capture” refers to a common phenomenon: individuals serving as regulators come to identify with […]

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Central banking and central planning

Posted by Thomas L. Hogan
November 24, 2014
in Blog

Last week in the Wall Street Journal, Paul Kupiec argued that the Fed’s new emphasis on “macroprudential” management is basically central planning and is likely to decrease financial stability and slow economic growth. A similar argument was made a few years back by Jeffrey Hummel (here) and debated by David Glasner (here) and Kurt Schuler […]

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Sound Money Project Breakfast in New York City

November 21, 2014
in Blog

During a special session following the 2014 Liberty Forum & Freedom Dinner, Dr. Judy Shelton and Seth Lipsky, founder and editor of the New York Sun, presented a session on Sound Money. Below are Dr. Shelton’s full comments. She is an Atlas Network senior fellow and the co-director of Atlas Network’s Sound Money Project. The […]

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Unconventional monetary policy? Or, asset purchasing (only more so)

Posted by William Luther
November 20, 2014
in Blog

You’ve probably heard it said that the Federal Reserve resorted to unconventional monetary policy to deal with the so-called Great Recession. Usually, discussions of the Fed’s unconventional monetary policy center on whether it has been effective. I’d like to consider a different angle: Was the Fed’s monetary policy unconventional? To assess whether the Fed is […]

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Government money…

Posted by Jerry Jordan
November 19, 2014
in Blog

… is not Sound Money “I am convinced we shall never have good money again so long as we leave it in the hands of government. Government has always destroyed the monetary systems.” *  Sound money is private money—government-issued monopoly currency has never been a stable standard of value. For centuries rulers have decreed what […]

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A global currency for a global economy: a real SDR currency board

November 18, 2014
in Blog

By Dr. Warren Coats   Introduction Since the collapse of the gold standard and the Bretton Woods system in the early 1970s, the resulting international monetary system (IMS) has supported a dramatic growth in world trade and finance remarkably well. Yet the system of market determined or managed exchange rates, which suited well a world […]

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Recap of the 32nd Cato Monetary Conference

November 17, 2014
in Blog

On November 6th, The Cato Institute in Washington DC held the 32nd Cato Monetary Conference. Last year, the topic of the conference was an assessment of the 100 years of the Fed. This year, the theme of the conference was about proposals and possibilities of institutional and monetary reforms and the whole Sound Money Project […]

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Greenspan back to gold? Peter Schiff reports

Posted by Alex Chafuen
November 10, 2014
in Blog

Peter Schiff writes “A couple weeks ago, we reported on Alan Greenspan’s prediction that the price of gold would rise. He said this at the New Orleans Investment Conference. In an interview at the Council on Foreign Relations (CFR) the next week, Greenspan commented even more on gold, though the CFR did not publish his […]

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Do higher reserves reduce bank risk?

Posted by Thomas L. Hogan
November 10, 2014
in Blog

During the 2008 financial crisis, many banks became illiquid and did not have enough cash reserves to pay their debts. The Fed responded to the liquidity shortage by paying banks to hold more reserves. The policy of paying interest on reserves (IOR) is intended to make banks safer, but can higher reserves actually increase risk? […]

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Most of the team of the Atlas Sound Money Project attended the Cato Institute Monetary Conference. Dr. Judy Shelton, co-director of the project spoke on “Building an Orderly and Ethical International Monetary System,” Senior fellow, Dr. Jerry L. Jordan, who knows more than any other person I know how the Fed interacts with banks spoke on “The Role of Gold in a Market-Based Monetary System” and former Atlas trustee Dr. Gerald P. O’Driscoll Jr. presented a paper on “Monetary Reform: Process and Substance.”

Several members of the Sound Money Project team, including talented young academics Nicolás Cachanosky, winner of the 2nd Prize in the Mont Pelerin Society Hayek Essay contest, William Luther (Kenyon College), Thomas Hogan (Troy University, and Gonzalo Schwarz (Atlas Network) were able to network and strategize about how best to embark on the road to sound money.

Congratulations and gratitude to James A. Dorn, George Selgin, John Allison, and others for the outstanding conference.

Sound Money team

Is the U.S. the right geographical benchmark for the Fed?

November 5, 2014
in Blog

Last Wednesday, the Federal Reserve announced that the QE policy has reached its end. After commenting on the improvement of U.S. economic indicators, the announcement states that “[a]ccordingly, the Committee decided to conclude its asset purchase program this month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency […]

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Deflationphobia strikes again!

Posted by William Luther
November 3, 2014
in Blog

In last week’s briefing, The Economist magazine worries that current spending on consumption and investment will fall if individuals believe money will be more valuable in the future. There are several issues with this position. First, focusing on deflation obscures the real concern. Deflation is not a cause, but a consequence. Yes, central banks might […]

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