Thursday, 05 March 2015

Commentary

Inflation targets and expectations

February 25, 2015

This month’s unemployment figures—which were much better than expected—prompted many to speculate that the Fed would begin raising its interest rate target in the near future. Some, including Vox’s Matt Yglesias, object to such a policy on the grounds that inflation remains below the Fed’s stated goal of 2 percent. There’s no denying that inflation […]

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Dark dollar dealings

February 24, 2015

With the conviction of Ross William Ulbricbht, founder of Silk Road, many proponents of bitcoin and other crypto-currencies fear that the government “might bolster efforts to regulate — and perhaps even ban the emerging cryptocurrency.” In an Op-Ed published by US News and World Report, William J. Luther of the Sound Money Project says that’s not how […]

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Sound money and banking

Posted by Thomas L. Hogan
February 23, 2015

What role does banking play in a theory of sound money? Banks in the United States are regulated by several agencies, especially the Fed. But should the Fed really regulate the banking system? Can the Fed effectively regulate the banking system? Regulators claim central banks have always run the banking system. Ben Bernanke, for example, […]

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Money and exchange rates

Posted by Jerry Jordan
February 18, 2015

The new year started with much media attention to exchange rates between currencies of some countries versus their trading partners. The Swiss got things started by announcing an end to the artificial peg of their currency—francs—and euros. The consequent dramatic rise in the exchange rate between francs and euros caused sudden and often very large […]

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No, the interest rate is not the price of money

February 9, 2015

The notion that the interest rate is the price of money is seriously misled. As I move forward with my lectures on the Keynesian system, this is something that I want to make clear to my students. Certainly, when evaluating the Keynesian model, we need to understand what the model says (and what it does not […]

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Greek crisis creates standoff between regulators and potential investors

February 4, 2015

This week, Yanis Varoufakis, Greek Minister of Finance, stoked the fire that has been spreading across Europe since the Syriza victory in Greece with bold rhetoric that labeled the ECB’s threats to cut funding for Greek banks as political intimidation and promised to continue to move forward with his party’s anti-austerity revolution. The EU-IMF troika […]

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