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 […]Read More
Commentaries by Atlas staff and those associated with the Sound Money Project.
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 […]Read More
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 […]Read More
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 […]Read More
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. […]Read More
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 […]Read More