Sunday, 25 September 2016

Uncategorized

Tall Paul Volcker

March 21, 2016

The Institute for Economic Education at East Texas Baptist University has produced a funny music video titled The Legend of Tall Paul. Paul Volcker, of course, is widely credited with getting monetary policy under control in the 1980s, ushering in a period in US economic history known as the Great Moderation. Enjoy!

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Expectations under growth and level targeting regimes

February 9, 2016

In general, I prefer a rules-based monetary policy to discretion, but not all rules are created equally. Today, I want to consider two types of nominal income targeting rules in the hopes of identifying their relative merits for anchoring long run expectations, enabling long run  and thereby promoting long run economic growth. 1) Nominal Income […]

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Money, inflation, and central banks

Posted by Jerry Jordan
December 2, 2015

Milton Friedman famously declared that inflation is always and everywhere a monetary phenomenon.  While that no doubt remains a universal principle, it is not the same (as some people think) that inflation is a central bank phenomenon.  Certainly, before central banks were created by governments there was inflation when Spanish galleons returned from the new world […]

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Op-ed: The Greek referendum: Will economic principles prevail?

July 8, 2015

Ultimately, an economy can only sustain itself if it produces more than it consumes. That’s a lesson that the Soviet Union learned the hard way decades ago, explains Atlas Network Sound Money Project Senior Fellow Jerry Jordan in a column for Forbes, but Greece seems determined to continue its high levels of spending and consumption at […]

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Op-ed: Greek solvency requires political reform, support from populace

March 2, 2015

A hard currency backed by specie like gold or silver imposes sound economic policies on the nations that use them, but currency established by central bank fiat requires sound policies to be established by political mechanisms in concert with the support of the electorate. In the case of the stagnation in Greece, the European Union […]

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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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