Monetary Policy
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“Monetary-Policy Disasters of the Twentieth Century”
“The Federal Reserve System was created in 1913 and soon did what central banks almost always do: it started printing lots of money. During World War I the Bank of England inflated its money supply, and as a result a significant amount of gold flowed out of Great Britain to the United States in the…
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Applying Hayekian Ideas: Leonard Read and I, Money
“In a recent blog post, Peter Boettke argues that in reading F.A. Hayek it is important to distinguish between Hayek and Hayekianism. Because Hayek, as a lifetime learner, did not always apply his ideas as fully he possibly could have, Hayek the man was at times less willing to take the ideas as far as…
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“Can the Government Regulate Inflation?”
“In a recent column, Nobel Prize winning economist Paul Krugman claimed that the government needs to have two important duties in finance. First, it must keep interest rates low; second, it must strictly regulate where the newly created money goes. Now, as one who believes that government cannot simultaneously make water run downhill and uphill,…
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The Euro – a Greek Drachma in Disguise
The Euro keeps tumbling as international investors are loosing faith in the Eurozone. The currency has so far fallen 14 percent against the dollar this year. There is fear that contagion could trigger “Greek” debt crises among other EU countries with weakening fiscal positions, and that European banks could realize substantial losses as a result.…
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“Did Deregulation Cause the Financial Crises?”
“The growing narrative in Washington is that a decades-long unraveling of the regulatory system allowed and encouraged Wall Street to excess, resulting in the current financial crisis. Left unchallenged, this narrative will likely form the basis of any financial reform measures. Having such measures built on a flawed foundation will only ensure that future financial…
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“Fed Will Hold Interest Rates – And Inflation Will Rise”
“Early this year, it was our belief (and forecast) that the Federal Reserve would start lifting interest rates from their current level of near zero by mid-year 2010. Our view has been that 0% interest rates are too low, that the economy would be (and is) in recovery, and that inflationary pressures would continue to…
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“Financial Regulation Bill Will Hurt Main Street”
“The U.S. Congress should be forced to take the same oath that doctors take to “first do no harm.” Because more often than not, under the guise of “fixing” a problem, Washington makes things much, much worse for hard-working middle-class families and small businesses. That’s precisely the problem with the financial regulation bill that’s before…
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“The Great Chinese Inflation”
“Inflations have undermined the cultural and economic fabric of society, bringing social chaos and revolution. One example is the Great Chinese Inflation of the 1930s and 1940s. Indeed, the destruction of the Chinese monetary system during this period helped Mao Zedong’s communist movement triumph on the Chinese mainland in 1949. In the nineteenth and early…
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Inflation Destroys Savings
“Everything that is done by a government against the purchasing power of the monetary unit is, under present conditions, done against the middle classes and the working classes of the population. Only these people don’t know it. And this is the tragedy. The tragedy is that the unions and all these people are supporting a…
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The Return of British Stagflation?
The UK inflation rate jumped to 3.7 percent last month, way above the Bank of England’s 2 percent target. This comes as a surprise to both the monetary policymakers of the BoE and to the newly formed coalition government. The Bank’s Governor Mervyn King explains this sudden rise in consumer prices in a letter to…
-
“Monetary-Policy Disasters of the Twentieth Century”
“The Federal Reserve System was created in 1913 and soon did what central banks almost always do: it started printing lots of money. During World War I the Bank of England inflated its money supply, and as a result a significant amount of gold flowed out of Great Britain to the United States in the…
-
Applying Hayekian Ideas: Leonard Read and I, Money
“In a recent blog post, Peter Boettke argues that in reading F.A. Hayek it is important to distinguish between Hayek and Hayekianism. Because Hayek, as a lifetime learner, did not always apply his ideas as fully he possibly could have, Hayek the man was at times less willing to take the ideas as far as…
-
“Can the Government Regulate Inflation?”
“In a recent column, Nobel Prize winning economist Paul Krugman claimed that the government needs to have two important duties in finance. First, it must keep interest rates low; second, it must strictly regulate where the newly created money goes. Now, as one who believes that government cannot simultaneously make water run downhill and uphill,…
-
The Euro – a Greek Drachma in Disguise
The Euro keeps tumbling as international investors are loosing faith in the Eurozone. The currency has so far fallen 14 percent against the dollar this year. There is fear that contagion could trigger “Greek” debt crises among other EU countries with weakening fiscal positions, and that European banks could realize substantial losses as a result.…
-
“Did Deregulation Cause the Financial Crises?”
“The growing narrative in Washington is that a decades-long unraveling of the regulatory system allowed and encouraged Wall Street to excess, resulting in the current financial crisis. Left unchallenged, this narrative will likely form the basis of any financial reform measures. Having such measures built on a flawed foundation will only ensure that future financial…
-
“Fed Will Hold Interest Rates – And Inflation Will Rise”
“Early this year, it was our belief (and forecast) that the Federal Reserve would start lifting interest rates from their current level of near zero by mid-year 2010. Our view has been that 0% interest rates are too low, that the economy would be (and is) in recovery, and that inflationary pressures would continue to…
-
“Financial Regulation Bill Will Hurt Main Street”
“The U.S. Congress should be forced to take the same oath that doctors take to “first do no harm.” Because more often than not, under the guise of “fixing” a problem, Washington makes things much, much worse for hard-working middle-class families and small businesses. That’s precisely the problem with the financial regulation bill that’s before…
-
“The Great Chinese Inflation”
“Inflations have undermined the cultural and economic fabric of society, bringing social chaos and revolution. One example is the Great Chinese Inflation of the 1930s and 1940s. Indeed, the destruction of the Chinese monetary system during this period helped Mao Zedong’s communist movement triumph on the Chinese mainland in 1949. In the nineteenth and early…
-
Inflation Destroys Savings
“Everything that is done by a government against the purchasing power of the monetary unit is, under present conditions, done against the middle classes and the working classes of the population. Only these people don’t know it. And this is the tragedy. The tragedy is that the unions and all these people are supporting a…
-
The Return of British Stagflation?
The UK inflation rate jumped to 3.7 percent last month, way above the Bank of England’s 2 percent target. This comes as a surprise to both the monetary policymakers of the BoE and to the newly formed coalition government. The Bank’s Governor Mervyn King explains this sudden rise in consumer prices in a letter to…
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