Monday, 23 January 2017
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    Rogoff on Seigniorage

    January 11, 2017
    In his book, The Curse of Cash, Harvard economist Ken Rogoff offers an excellent discussion of the modern seigniorage process: Instead of having the government print money and buy things directly, modern-day seigniorage is a three stage process. In stage one, the government spends beyond its means (its tax revenues) and issues interest-bearing debt to […]

    “Strong” and “Weak” Currencies

    January 10, 2017
    Is a “strong dollar” good or bad?  If the currency of another country is pegged to the US dollar, and the US dollar is “strong,” is that good or bad for the other country? A recent Wall Street Journal article was titled “Heat is on Currencies with Pegs to Dollar” and the subtitle was “The […]

    Tools of Monetary Policy

    December 13, 2016
    For several decades the money we use in everyday life is “fiat currency.”  That is, it is created by central banks and its value is not anchored to anything of intrinsic worth such as gold.  The workings and decision making of central banks is therefore important, and does not need to be a subject of […]

    Public infrastructure: Welcome to the world of waste, fraud, and abuse

    November 28, 2016
    This article appeared in the December 2016 issue of Globe Asia Economic policy is subject to fads and fashions. The most recent economic-policy fad is public infrastructure. Its advocates include progressives on the “left” – like President Obama, Hillary Clinton, and Bernie Sanders – and populists on the “right” – like President-elect Trump. They tell us to […]

    34th Cato Monetary Conference: Central Banks and Financial Turmoil

    November 23, 2016
    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 […]

    Monetary debates

    November 14, 2016
    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 […]

    The asymmetry of central bank power

    November 10, 2016
    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 […]

    Op-ed: What Brexit means for the euro

    November 7, 2016
    This article originally appeared in Forbes International political and economic news in recent weeks was filled with stories and analyses of the United Kingdom referendum to leave the European Union (EU). The immediate results of the vote included the resignations of the British Prime Minister and other government leaders, as well as a substantial decline […]