Economy News

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Established 1999

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Central Banking

  • •

    Robust Political Economy and the Fed – Peter Boettke

    “But I wonder if in these discussions of monetary policy in response to the financial crisis the political economy of public policy is not seriously being overlooked. I have in fact raised these concerns before, and while the political economy costs are often acknowledged I don’t think they are fully absorbed into the analysis of…

  • •

    “Why Inflation Matters” – Steven Horwitz

    From our friends at the Mercatus Center: “Although it has yet to make an appearance on the current economic scene, inflation continues to be a ghost that haunts the future of the U.S. economy. The Federal Reserve System has pumped an unprecedented amount of money into the banking system, and the trillions of dollars spent…

  • •

    “Alan Goldspan”

    By Reuven Brenner* Seemingly out of the blue, the U.S. Federal Reserve chairman is hinting at a return to the gold standard. If so, currency markets are in for a shock.  Last month in a speech before the Economic Club of New York, Alan Greenspan praised the gold standard, the first time he has unambiguously…

  • •

    “It’s the Money, Stupid”

    “At the moment, Republican leaders and policy elites are advancing exclusively fiscal solutions that address only the government response to the economic crisis and not the crisis itself. Fiscal deficits did not create the crisis, and reducing deficits won’t put our economy on a stable footing. From its inception in 2007 right up to the…

  • •

    Central Banking, Limited Purpose Banking, Free Banking…

    “But if the problem isn’t in the application of the system, but it is the system, then all efforts to reform practice will fail, and fail miserably. This is what we believe the logic of economic argument leads one to conclude about central banking and government monopoly over the currency. We also believe that the…

  • •

    “Blame Central Banking Not Banks”

    “Too much money leads first to a boom and then a terrible bust. Re-stimulation continues the process and makes economic imbalances worse over time until finally the whole system begins to collapse and something else emerges. We are in a collapse phase currently. The problems begin and end with mercantilist central banks. Absent central banks…

  • •

    “Inflation Cause and Effect”

    “But back to the question of the cause of inflation. Basically when the government increases the money supply faster than the quantity of goods increases we have inflation. Interestingly as the supply of goods increase the money supply has to increase or else prices actually go down. Many people mistakenly believe that prices rise because…

  • •

    “Dollar Reaches 15-Year Low Versus Yen”

    “The dollar dropped to a 15-year low against the yen and the weakest in more than eight months against the euro amid growing expectations the Federal Reserve will expand credit easing to sustain the U.S. recovery.” Read more.  “Dollar Reaches 15-Year Low Versus Yen on Fed; Euro Strengthens”  Keith Jenkins and Yasuhiko Seki  Businessweek, October…

  • •

    “What’s Wrong with Fed Policy?”

    “Investor reaction to Ben Bernanke’s apparent focus on price indices — jumping into the stock market when he hints that he may not raise rates, and jumping out when they suspect he will — is understandable. These reactions do not imply that investors prefer inflation, but rather that they expect the Fed may be overshooting…

  • •

    “The Fed Is All Wrong About Inflation”

    “To summarize: government programs to support housing have depressed rental prices, which is making core inflation artificially low. And since the Fed uses core CPI as one of its primary inflation gauges, Bianco says the central bank is lulling itself into a false sense of security about inflation.” Read more.  “The Fed Is All Wrong…

  • •

    Robust Political Economy and the Fed – Peter Boettke

    “But I wonder if in these discussions of monetary policy in response to the financial crisis the political economy of public policy is not seriously being overlooked. I have in fact raised these concerns before, and while the political economy costs are often acknowledged I don’t think they are fully absorbed into the analysis of…

  • •

    “Why Inflation Matters” – Steven Horwitz

    From our friends at the Mercatus Center: “Although it has yet to make an appearance on the current economic scene, inflation continues to be a ghost that haunts the future of the U.S. economy. The Federal Reserve System has pumped an unprecedented amount of money into the banking system, and the trillions of dollars spent…

  • •

    “Alan Goldspan”

    By Reuven Brenner* Seemingly out of the blue, the U.S. Federal Reserve chairman is hinting at a return to the gold standard. If so, currency markets are in for a shock.  Last month in a speech before the Economic Club of New York, Alan Greenspan praised the gold standard, the first time he has unambiguously…

  • •

    “It’s the Money, Stupid”

    “At the moment, Republican leaders and policy elites are advancing exclusively fiscal solutions that address only the government response to the economic crisis and not the crisis itself. Fiscal deficits did not create the crisis, and reducing deficits won’t put our economy on a stable footing. From its inception in 2007 right up to the…

  • •

    Central Banking, Limited Purpose Banking, Free Banking…

    “But if the problem isn’t in the application of the system, but it is the system, then all efforts to reform practice will fail, and fail miserably. This is what we believe the logic of economic argument leads one to conclude about central banking and government monopoly over the currency. We also believe that the…

  • •

    “Blame Central Banking Not Banks”

    “Too much money leads first to a boom and then a terrible bust. Re-stimulation continues the process and makes economic imbalances worse over time until finally the whole system begins to collapse and something else emerges. We are in a collapse phase currently. The problems begin and end with mercantilist central banks. Absent central banks…

  • •

    “Inflation Cause and Effect”

    “But back to the question of the cause of inflation. Basically when the government increases the money supply faster than the quantity of goods increases we have inflation. Interestingly as the supply of goods increase the money supply has to increase or else prices actually go down. Many people mistakenly believe that prices rise because…

  • •

    “Dollar Reaches 15-Year Low Versus Yen”

    “The dollar dropped to a 15-year low against the yen and the weakest in more than eight months against the euro amid growing expectations the Federal Reserve will expand credit easing to sustain the U.S. recovery.” Read more.  “Dollar Reaches 15-Year Low Versus Yen on Fed; Euro Strengthens”  Keith Jenkins and Yasuhiko Seki  Businessweek, October…

  • •

    “What’s Wrong with Fed Policy?”

    “Investor reaction to Ben Bernanke’s apparent focus on price indices — jumping into the stock market when he hints that he may not raise rates, and jumping out when they suspect he will — is understandable. These reactions do not imply that investors prefer inflation, but rather that they expect the Fed may be overshooting…

  • •

    “The Fed Is All Wrong About Inflation”

    “To summarize: government programs to support housing have depressed rental prices, which is making core inflation artificially low. And since the Fed uses core CPI as one of its primary inflation gauges, Bianco says the central bank is lulling itself into a false sense of security about inflation.” Read more.  “The Fed Is All Wrong…