Monday, 11 December 2017

Monthly Archives February 2016

The Hong Kong dollar, rock solid

Posted by Steve H. Hanke
February 29, 2016
in Blog

The currency speculators are restless, again. Many, like George Soros and Kyle Bass, are reportedly taking aim at the Hong Kong dollar (HKD). HKD bear circles think China’s renmimbi (RMB) will lose value against the U.S. dollar (USD) as China’s economy slows down and capital flight from China continues. This, it is asserted, will put pressure […]

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Op-ed: Global monetary turmoil is hurting economic growth

February 25, 2016
in Blog

For the first time in recent memory, politicians and candidates alike are talking about the importance of rules-based monetary reform and the public is shifting its attention (and ire) from the bankers on Wall Street to the central bankers at the Federal Reserve. But is monetary reform– even coupled with fiscal and regulatory reform– the cure […]

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Austrian business cycle theory and rational expectations

February 24, 2016
in Blog

Although Austrian business cycle theory (ABCT) is a powerful price-theoretic explanation for monetary-induced booms and busts, it is not without critics.  Indeed, many find ABCT implausible for two reasons.  The first is that it seems to rely on individuals making systematic and economy-wide errors.  This seems inconsistent with rational decision making, especially the theory of rational expectations.  The second […]

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13 Things Bernanke Believes (That I Don’t)

Posted by William Luther
February 22, 2016
in Blog

Ben Bernanke is obviously a very intelligent guy. And I am inclined to believe he is a good person (i.e., honest, well-intentioned, etc.). So it is a bit unsettling to find that we seem to disagree on so many fundamental issues. In what follows, I will list several. Some of our disagreements are about the […]

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Nicolas Cachanosky interviewed at Reinvent.Money

February 17, 2016
in Blog

This week, Sound Money Project fellow Nicolas Cachanosky appeared in an episode of Reinvent.Money and discusses free banking vs. central banking, competing currencies, property rights and his involvement with the Sound Money Project. Watch the interview below:  

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Expectations under growth and level targeting regimes

Posted by William Luther
February 9, 2016
in Blog

In general, I prefer a rules-based monetary policy to discretion, but not all rules are created equally. Today, I want to consider two types of nominal income targeting rules in the hopes of identifying their relative merits for anchoring long run expectations, enabling long run  and thereby promoting long run economic growth. 1) Nominal Income […]

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Steve Forbes speaks out on the Presidential race, Fed recklessness, and gold

February 4, 2016
in Blog

The following is an exclusive interview with Mike Gleason, Director of Money Metals Exchange and originally appeared on the Money Metals Exchange page. To listen to the interview, click here.  Mike Gleason, Director, Money Metals Exchange: Today we have a tremendous treat in store for our listeners as we welcome in none other than Steve Forbes. I had the honor […]

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Austrian business cycle theory and monetary equilibrium

February 3, 2016
in Blog

As Steve Horwitz has shown, the insights of Austrian macroeconomics and monetary disequilibrium theory can be combined to yield a powerful paradigm for understanding how monetary policy affects the economy.  Crucial to this synthesis is the neutrality of money.  Remember that money is neutral when it facilitates exchange, but does not distort the terms of exchange.  […]

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Central banks and foreign exchange markets

Posted by Jerry Jordan
February 1, 2016
in Blog

In addition to turmoil in common stock markets around the world, the early weeks of the new year have been characterized by changes in—and much hand wringing about—exchange rates between currencies. Prospects for changes in currency exchange rates were also much in the financial news a year ago, with considerable confusion about what was happening […]

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