Even when a policy is successful in achieving its desired ends, we have to consider its unintended and unforeseen consequences, resulting from cumulative market adjustments to policy changes that make it hard to judge the overall outcome of a policy in our complex economy. The Federal Reserve and European Central Bank’s monetary policy responses to […]Read More
Commentaries by Atlas staff and those associated with the Sound Money Project.
This piece originally appeared in Alt-M By Ari Blask More than two hundred people came to Cato last Thursday, November 17th, for the 34th Annual Monetary Conference. Four panels and two keynote speakers covered “Central Banks and Financial Turmoil,” the theme of this year’s conference. In his introduction, CMFA’s James Dorn laid out some of the […]Read More
In recent decades, the “big debate” among monetary economists and policy makers was “Rules versus Discretion.” That debate accepted that the various tools/instruments available to monetary policymakers are well known. Implicit is that the linkages between open market operations of the central bank’s trading desk and the objectives of monetary policies have been defined and […]Read More
For some time now, a lot of attention has been put on the Federal Reserve’s decision on whether or not to increase the federal funds rate target or to leave it unchanged at its current level. The health of the U.S. economy (and a significant part of the world economy) seems to depend whether or not the […]Read More
This piece originally appeared in the Daily Caller With just days until the conclusion of one of our history’s most polarizing presidential election cycles, it’s hard for a proponent of a free-society to be truly excited. But while it may be difficult to accurately predict what a Clinton or a Trump presidency might look like, […]Read More
When discussing the market for money balances, many reputable macroeconomics and money and banking textbooks say that the price of money is the interest rate. This ‘liquidity preference’ theory is misguided. The kernel of truth therein is that, in holding higher money balances, an individual is forsaking earning a nominal rate of return on assets […]Read More