Friday, 21 November 2014

Blog

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

November 20, 2014

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

… 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

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

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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Do higher reserves reduce bank risk?

Posted by Thomas L. Hogan
November 10, 2014

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

November 5, 2014

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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