Wednesday, 23 July 2014

Policy Papers

Realizing Bitcoin’s potential

July 22, 2014

Governments around the world are grappling with what to do with Bitcoin — the cryptocurrency that has attracted enthusiasts worldwide, endured the bankruptcy of one major exchange (Tokyo-based Mt. Gox), and puzzled fans and detractors alike with regard to its legal status. The Montreal Economic Institute recently published a study that discusses Bitcoin’s potential. In […]

Read More

More Credit, More Money: Poland and the Euro-zone

Posted by Gonzalo Schwarz
November 11, 2013

By Steve H. Hanke Money matters — it’s a maxim of Prof. Milton Friedman that I repeat often in my columns, and to my students in class. Since the Northern Rock bank run of 2007 — the “opening shot” of the recent financial crisis — the money supply, broadly measured, in Poland and the rest […]

Read More

Panic in Persia as Hyperinflation Hits Iran

Posted by Gonzalo Schwarz
November 8, 2012

by Steve H. Hanke For decades, the Iranian economy has been cobbled together by religious-bureaucratic regimes that have employed mandates, regulations, price controls, subsidies and a wide variety of other interventionist devices, in an attempt to achieve their goals. It’s all been kept afloat – barely afloat – by oil revenues. Shortly after Mahmoud Ahmadinejad […]

Read More

Central Banks: Reform or Abolish?

Posted by Gonzalo Schwarz
October 16, 2012

by Gerald P. O’Driscoll Jr. Advocates of central bank reform must examine why central banks emerged and what forces sustain them. They did not arise in an institutional vacuum, and will not be reformed in an institutional vacuum. The historical origins of central banks explain how they came into existence. The forces sustaining and feeding […]

Read More

“Fannie Mae, Freddie Mac, and the Future of Federal Housing Finance Policy” – Cato

Posted by Tom Duncan
May 18, 2011

“The federal government recently placed Fannie Mae and Freddie Mac, the government chartered, privately owned mortgage finance companies, in conservatorship. These two massive companies are profit driven, but as government-sponsored enterprises (GSEs) they also have a government-mandated mission to provide liquidity and stability to the U.S. mortgage market and to achieve certain affordable housing goals. […]

Read More

Stop Printing Money, Inc.

Posted by Tom Duncan
April 18, 2011

“America currently has $14 trillion in debt on the books and another $70 trillion or so in unfunded entitlements and pensions that are not yet on the books. These debts will never be repaid with dollars at current value. Either America will devalue its currency through inflation or it will default on its promises and […]

Read More

“Easy Money and the Decapitalization of America” – Cato

Posted by Tom Duncan
February 17, 2011

“Federal Reserve monetary policy over the past 15 years or so has produced bubble after bubble,and each bubble (or each group of contemporaneous bubbles) is bigger in aggregate and more damaging than the one that preceded it. Each bubble destroys part of the capital stock by diverting capital into economically unjustified uses—artificially low interest rates […]

Read More

Can Monetary Policy Really Create Jobs? – Vedder

Posted by Tom Duncan
February 15, 2011

“Variations in unemployment rates can be explained by changes in the productivity-adjusted real wages received by labor. Other things equal, rises in productivity or prices tend to have the impact of lowering unemployment, as does falling money wages. This implies inflationary monetary policies will increase employment and lower unemployment—the Phillips Curve phenomenon. But consistent inflation […]

Read More

“Does Government Spending Affect Economic Growth” – Mercatus

Posted by Tom Duncan
January 19, 2011

“Government spending, even in a time of crisis, is not an automatic boon for an economy’s growth. A body of empirical evidence shows that, in practice, government outlays designed to stimulate the economy may fall short of that goal. Such findings have serious consequences as the United States embarks on a massive government spending initiative. […]

Read More