Monday, 11 December 2017

Monthly Archives June 2015

Understanding the Greek crisis

June 30, 2015
in Blog

As I write these lines, it is almost certain that Greece will default on its debt today, June 30. What led to such a disastrous situation? To understand, we must look back in time to the events leading up to and surrounding today’s expected default. A brief clarification must be made in order to understand […]

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Why free-banking?

June 29, 2015
in Blog

The need for and convenience of a central bank are usually taken for granted. To say that a central bank is a good institution and, therefore, needed, is not enough. Unfortunately, the assumption that central banks are necessary seems to weigh more heavily than the facts that suggest otherwise. Good and bad are relative terms. […]

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Inflation targeting as a monetary policy rule

June 22, 2015
in Blog

Among economists who agree that monetary policy should be conducted according to predictable rules, perhaps no proposed rule enjoys greater support than inflation targeting.  In brief, inflation targeting means the central bank conducts monetary policy such that it comes as close as possible to creating (or rather, setting the macroeconomic conditions for markets to create) […]

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Sound money alternatives series

June 19, 2015
in Blog

Over the next few weeks, the Sound Money Project will be running a series of blog posts exploring free-market monetary alternatives. Our dedicated fellows will prepare a series of posts that explain the principles and importance of the following topics: Nominal GDP targeting Currency board Commodity backed currencies Gold Standard Free banking Interest rate targeting […]

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Why are real interest rates so low?

Posted by William Luther
June 17, 2015
in Blog

In a recent blog post, Alex Salter discusses the problem of reasoning from a price change in the context of interest rates. Simply put, observing a low interest rate does not necessarily mean that monetary policy is loose (or tight!). Instead, we should consider what caused this price to change. Low real interest rates could […]

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More on money and interest rates

Posted by Jerry Jordan
June 15, 2015
in Blog

A confusion arising from the popular usage of the word “money” is that bankers claim to lend money and bank customers claim to borrow money. But, people do not increase their indebtedness in order to hold greater idle cash balances! The extension of credit by financial intermediaries does not alter the amount of money in […]

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Old money: How the Fed’s actions harm millennials

June 8, 2015
in Blog

By Diana Furchtgott-Roth and Jared Meyer In our new book, Disinherited: How Washington Is Betraying America’s Young, we show how government policy is biased towards older people and creates an environment that systemically works against young Americans. In monetary policy, too, Washington is playing favorites and the young are the losers. They do not benefit from […]

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Op-ed: Trade agreements need rational provisions to end currency manipulation

June 5, 2015
in Blog

It’s a well-known fact among economists of nearly every stripe that global trade is an engine of prosperity, especially for developing nations with a crucial need for access to international markets. The proposed Trans-Pacific Partnership trade agreement has the potential to boost the economies of the 12 nations in the Asia Pacific region that are […]

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Ten things every economist should know about the gold standard

June 4, 2015
in Blog

This piece was originally published by Alt-M By George Selgin At the risk of sounding like a broken record (well, OK–at the risk of continuing to sound like a broken record), I’d like to say a bit more about economists’ tendency to get their monetary history wrong.  In particular, I’d like to take aim at common myths […]

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Evaluating quantitative easing

June 3, 2015
in Blog

This piece was originally published in Alt-M By Gerald P. O’Driscoll In my prior post, “The Futility of Stimulus,” I examined whether Federal Reserve Policy has provided economic stimulus.  I employed standard measures of money-supply growth to evaluate the question.  I concluded that Federal Reserve policy has resulted in less expansion of the money supply […]

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Ben Bernanke, Austrian macro economist

Posted by William Luther
June 1, 2015
in Blog

The Fed and its officials take a lot of flak from those working in the tradition of Mises and Hayek. I’ve been known to dish the dirt (occasionally with the likes of Peter Boettke and Steve Horwitz). And, given its track record, criticism is certainly warranted. But self-styled Austrians should be careful not to go […]

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