Friday, 22 September 2017

Monthly Archives September 2015

Financial bubbles and macro prudential policy

September 30, 2015
in Blog

In the field of monetary policy, there is one question that must necessarily be addressed: what should a central bank do in light of a financial bubble? Should it try to burst the bubble as soon as it arises or engage in damage control after a financial crisis occurs? Personally, I don’t think that there is […]

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The nature of central banking and the importance of a monetary constitution

September 28, 2015
in Blog

In my previous posts, I argued that it is imperative to secure a monetary policy regime that adheres to the rule of law.  In this post, I will extend the argument further: truly lawful money requires a monetary constitution of some kind. There is actually considerable sympathy to rules-based monetary policy contemporary macroeconomics.  However, not all monetary […]

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The Rupiah is in trouble, again

September 23, 2015
in Blog

By Steve H. Hanke This article appeared in the October 2015 issue of Globe Asia. The rupiah is plumbing the depths it last visited in 1998 during the Asian financial crisis. The accompanying chart of the rupiah’s value against the U.S. dollar tells the tale. Although the rupiah’s recent plunge is not as dramatic as […]

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Op-ed: The Fed, killing economic growth softly

September 22, 2015
in Blog

Economic growth results from business owners making successful plans to invest and meet customer needs over time, but the unpredictable machinations of central banks like the Federal Reserve throw a monkey wrench in that economic calculation process. The Fed’s recent press conference is a perfect example of how the arbitrary and ambiguous decisions of central […]

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Raising interest rates: The Fed vs. The Treasury?

September 21, 2015
in Blog

In its latest meeting, the Federal Open Market Committee (FOMC) decided to not increase the Federal funds rate target, extending the lower zero bound policy until at least their next meeting. Although the decision was not unexpectable, some people did find it a bit surprising. The post 2008 recovery has been one of the slower […]

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Op-ed: It’s time to reconsider the Fed’s Dual Mandate

September 18, 2015
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This piece originally appeared on Forbes.com By Jared Meyer and Johannes Schmidt All this week, people anxiously awaited results from the Federal Reserve’s Federal Open Market Committee meeting in Washington, D.C. Though many expected the FOMC would decide to finally raise interest rates and begin to normalize monetary policy, on Thursday it was announced that […]

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Op-ed: Don’t ask if the Fed will raise interest rates, it’s the wrong question

September 16, 2015
in Blog

Central banks are vested with a tremendous amount of economic power, but there’s no real reason to think that they wield that power wisely. As the U.S. Federal Reserve’s Federal Open Market Committee begins its scheduled meeting, Atlas Network Sound Money Project Fellow Dr. William J. Luther takes a look at the Fed’s targeting of […]

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The moral obligation of monetary policy

Posted by William Luther
September 14, 2015
in Blog

Sound money advocates frequently invoke moral arguments. Some refer to Deuteronomy 25:15-16, where Jews were instructed to have “honest weights and measures” because “the Lord detests anyone who … deals dishonestly.” Some mention Juan de Mariana’s assessment of debasement as an “infamous systemic robbery.” Some recall Murray Rothbard’s view that the government “is supposed to […]

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A different kind of monetary control

Posted by Jerry Jordan
September 9, 2015
in Blog

This piece was written in response to a recent Financial Times editorial. Have you ever doubted the real reasons governments throughout history and all over the world want to control what ‘we the people’ choose to use “as money?” The reasons people want to use something for the purposes we ascribe to money are well known. […]

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Confusion and contradiction at the Fed

September 4, 2015
in Blog

By Michael Belongia and Peter Ireland Over the past several years, Federal Reserve officials have issued multiple and often conflicting statements about whether their federal funds rate target should be increased and, if so, when that change should occur.  As we discussed in an earlier column, these attempts at “forward guidance” appear to have confused consumers […]

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Money and the rule of law, continued

September 3, 2015
in Blog

In my last post, I argued that monetary regimes should be judged not just on macroeconomic grounds, but also on whether they adhere to the rule of law.  In this post, I want to extend that argument: the rule of law should be the primary consideration for judging monetary regimes. Macroeconomic issues matter, but should be viewed as […]

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The Sound Money Project takes on the Fed at the Jackson Hole Summit

September 1, 2015
in Blog

From left to right:Sound Money Editor Johannes Schmidt, Dr. William Luther of the Sound Money Project, U.S. Senate Banking Committee Chief Economist and former Sound Money Project Fellow Dr. Thomas Hogan, Atlas Network Senior Fellow and Sound Money Project Co-Director Dr. Judy Shelton, Atlas Network President Alex Chafuen, and Sound Money Project Manager Gonzalo Schwarz. Money has become so […]

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