Monetary Policy
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The Case for Decentralizing Monetary Policy
“Wood’s book was published in the year 2000 and cites history dating back hundreds of years, yet today those lessons are as timely as ever. Policy makers should heed the lessons of history and the principles of sound money to ensure that the future of money is guided by the democratic tendencies of the market…
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Dry Tinder at the Fed
“A more significant stash of dry tinder lurks in the Federal Reserve computers (hat tip: Cathie Wood). I refer to the reserves that commercial banks hold in their accounts at the Fed. At one time, they were required to hold balances equal to 10% of their demand deposit liabilities and were free to hold more—excess…
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Digital Currencies and US Dollar Dominance
“Is this the end for the US Dollar as the world’s reserve currency? As Churchill might have said, ‘…This is not the end. It is not even the beginning of the end, but it is, perhaps, the end of the beginning.’” ~ Colin Lloyd
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The Biggest Janet Yellen Red Flag Is George Akerlof
“While Yellen is surely smart in the book sense, there’s absolutely nothing remarkable about her economic knowledge. In truth, her ideology is very unoriginal, and is rooted in the hard-to-credit view that economic growth can be engineered via the forced redistribution of wealth from producers to consumers.” ~ John Tamny
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QE Goes Global
“In a fiat currency world the limits of central bank balance sheet expansion remain unclear, but, as the world economy recovers from the largest economic shock in generations, those limits will become clear. For the large, DM, central banks, these EM limits will be noted with care. Japan has been the petri dish of global…
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Debt or Taxes
“At the present juncture, developed country government bond yields are more likely to fall than rise. Fiscal spending will be financed by deferred taxation, the repayment of today’s (and probably tomorrow’s) obligations will be bequeathed to our children and grandchildren. Digital taxes, taxation on wealth and financial transaction fees may creep higher at the margins,…
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The Fed’s Policy Shift to Let Inflation Rip Higher Is Deeply Flawed
“It’s hard to see the Fed achieving higher inflation, given its recent failure in this matter. A quick look at the monthly consumer price index data over the last decade shows that for the vast majority of the period, inflation was well below 2%. Or put another way, despite all the money printing by the…
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ECB: On the Credit Wave towards Zombification
“As in the planned economies, negative productivity gains and painful prosperity losses will be unavoidable. Because productivity gains are the basis for real wage increases, the benign long-term credit conditions of the ECB increasingly become a burden for the young people in Europe.” ~ Gunther Schnabl & Nils Sonnerberg
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More Stimulus Checks: An Expensive Political Stunt
“Adding $400 a week to unemployment benefits would clearly be more than enough. When it comes to Economic Impact Payments the economically optimal amount is zero.” ~ Alan Reynolds
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What Did the “Stimulus Plan” Stimulate?
“The only conceivable rationale for repeating the latest of many failed experiments with fiscal stimulus (borrowing from Peter to pay Paul) might be to ‘stimulate demand.’ But we just tried that. It didn’t work. It never works.” ~ Alan Reynolds
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•
The Case for Decentralizing Monetary Policy
“Wood’s book was published in the year 2000 and cites history dating back hundreds of years, yet today those lessons are as timely as ever. Policy makers should heed the lessons of history and the principles of sound money to ensure that the future of money is guided by the democratic tendencies of the market…
-
•
Dry Tinder at the Fed
“A more significant stash of dry tinder lurks in the Federal Reserve computers (hat tip: Cathie Wood). I refer to the reserves that commercial banks hold in their accounts at the Fed. At one time, they were required to hold balances equal to 10% of their demand deposit liabilities and were free to hold more—excess…
-
•
Digital Currencies and US Dollar Dominance
“Is this the end for the US Dollar as the world’s reserve currency? As Churchill might have said, ‘…This is not the end. It is not even the beginning of the end, but it is, perhaps, the end of the beginning.’” ~ Colin Lloyd
-
•
The Biggest Janet Yellen Red Flag Is George Akerlof
“While Yellen is surely smart in the book sense, there’s absolutely nothing remarkable about her economic knowledge. In truth, her ideology is very unoriginal, and is rooted in the hard-to-credit view that economic growth can be engineered via the forced redistribution of wealth from producers to consumers.” ~ John Tamny
-
•
QE Goes Global
“In a fiat currency world the limits of central bank balance sheet expansion remain unclear, but, as the world economy recovers from the largest economic shock in generations, those limits will become clear. For the large, DM, central banks, these EM limits will be noted with care. Japan has been the petri dish of global…
-
•
Debt or Taxes
“At the present juncture, developed country government bond yields are more likely to fall than rise. Fiscal spending will be financed by deferred taxation, the repayment of today’s (and probably tomorrow’s) obligations will be bequeathed to our children and grandchildren. Digital taxes, taxation on wealth and financial transaction fees may creep higher at the margins,…
-
•
The Fed’s Policy Shift to Let Inflation Rip Higher Is Deeply Flawed
“It’s hard to see the Fed achieving higher inflation, given its recent failure in this matter. A quick look at the monthly consumer price index data over the last decade shows that for the vast majority of the period, inflation was well below 2%. Or put another way, despite all the money printing by the…
-
•
ECB: On the Credit Wave towards Zombification
“As in the planned economies, negative productivity gains and painful prosperity losses will be unavoidable. Because productivity gains are the basis for real wage increases, the benign long-term credit conditions of the ECB increasingly become a burden for the young people in Europe.” ~ Gunther Schnabl & Nils Sonnerberg
-
•
More Stimulus Checks: An Expensive Political Stunt
“Adding $400 a week to unemployment benefits would clearly be more than enough. When it comes to Economic Impact Payments the economically optimal amount is zero.” ~ Alan Reynolds
-
•
What Did the “Stimulus Plan” Stimulate?
“The only conceivable rationale for repeating the latest of many failed experiments with fiscal stimulus (borrowing from Peter to pay Paul) might be to ‘stimulate demand.’ But we just tried that. It didn’t work. It never works.” ~ Alan Reynolds