Monetary Policy
Credit Markets - Road to Serfdom

The Road to Serfdom…via Credit Markets

– October 7, 2019

The role of bitcoin, and cryptocurrencies more broadly, in a negative interest rate world (as unlikely as that truly is), is twofold.

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Monetary Policy
Federal Reserve

The Fed’s Program of Two-Stage Sterilization

– September 25, 2019

In the first stage, it removes a significant amount of base money from circulation by paying interest on excess reserves. In the second stage, it manipulates other accounts at the Federal Reserve that influence the quantity of base money in circulation.

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Monetary Policy

How Much Independence Has Fed Lost?

– September 24, 2019

The genius of the recent NBER paper, by Duke’s Francesco Bianchi and London Business School’s Howard Kung and Thilo Kind, is that it directly measures the effect of President Donald J. Trump’s tweets critical of the Federal Reserve on the Federal Funds Rate, a key overnight interbank interest rate.

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Monetary Policy
Negative INterest Rate

Everything You Need to Know About Negative Interest Rates

– September 20, 2019

If President Trump wants to lower the real cost of government debt, he should urge the Federal Reserve to increase nominal interest rates — not decrease them.

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Monetary Policy
inflationrate

What’s the Right Inflation Rate?

– September 5, 2019

There is nothing magical about a 2% inflation target. Recognizing that is a much-needed first step toward better Fed policy.

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Monetary Policy, Sound Money
twopillars

Judy Shelton and the Dual Mandate Debate

– August 23, 2019

Shelton is right to criticize the full-employment aspect of the Fed’s dual mandate.

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Monetary Policy
chiangkaitshek

Currency War with China: 1934 and 2019

– August 11, 2019

Today’s currency war with China promises to deliver what currency wars always deliver: instability and uncertainty.

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Monetary Policy
bankknotes

To Save Cash from Extinction, Consider Banknote Lotteries

– July 25, 2019

Cash’s usage in payments has been steadily declining as a percentage of all payments, especially in the developed world. Given the list of cash’s advantages, it’s probably worth the effort of protecting this grungy and unsexy payments option. But what can we do?

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Monetary Policy
japanyen

Japan Did Not Gain Foreign Markets through Devaluation

– July 1, 2019

It’s the countries most open to the world’s plenty, including plenty produced in countries that allegedly “cheat” when it comes to trade, that are the most prosperous.

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Monetary Policy
shotgunswitch

The Rise of the Shotgun Banknote Switch

– June 24, 2019

In times past the monetary authorities confined these sorts of stringent measures to war-time. Perhaps they should stay that way.

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