Monetary policy influences inflation, employment, and economic activity. A stable but dynamic monetary system is vital for supporting economic growth, individual liberty, and a prosperous society. Therefore, we examine the causes and consequences of monetary policy (including inflation), identify ideal and practical steps towards a better monetary policy regime, and look at monetary alternatives and financial regulation.
Articles
Could a Rule-Bound Fed Constrain Congressional Spending?
The Fed’s lack of clear rules makes it vulnerable to outside pressure. A commitment to price stability could force Congress to confront its own excesses.
Business Conditions Monthly January 2026
Consumer-level price pressures have eased, but upstream costs are building. Rising producer prices and higher input costs — particularly in metals and energy — suggest continued pipeline pressures.
The Fed Sees Higher Inflation Coming — and May Cut Rates Anyway
Inflation is well above two percent, but rate paths haven't moved. The disconnect suggests a shift in how much inflation the Fed is willing to tolerate.
Bigger Isn’t Better: A Case for Downsizing the Federal Reserve
Does the Fed need 24,000 employees? A leaner, more automated institution could reduce costs and improve transparency.
Monetary Policy Rules Suggest Fed Should Hold Steady in March
The federal funds rate is already lower than levels recommended by several well-known policy guidelines. Recent uncertainty does not justify further easing.
Fed Officials Face Diverging Mandates
Evidence suggests that inflation is relatively widespread, job creation has weakened, the Fed will likely hold the policy rate steady.
Warsh: The Fed Helped Create Fiscal Dominance
Federal Reserve chair nominee Kevin Warsh argues the Fed has drifted far beyond its mandate, becoming a “general-purpose agency of government.”
The Fed Has a Groupthink Problem. Warsh Can Fix It
Evidence shows groupthink has produced suboptimal monetary policy. Kevin Warsh’s out-of-sync views could bring much-needed diversity to the Fed.
Inflation Edged Up in February, But Core Price Pressures Ease
The data suggest nominal spending and wage growth are stable, and easing policy too quickly could risk reigniting price pressures.
AIER’s Everyday Price Index Jumps 0.61 Percent in February 2026
Official CPI suggests moderating inflation, but our in-house index clocks the largest increase in 13 months. Affordability will worsen with the outbreak of war with Iran.
Research Publications
On the origins of cryptocurrencies
WJ Luther, N Sridhar. A Modern Guide to Austrian Economics, 200-215, 2022
Seigniorage payments and the Federal Reserve’s new operating regime
BP Cutsinger, WJ Luther. Economics Letters 220, 110880, 2022
Central bank independence and the Federal Reserve’s new operating regime
JL Jordan, WJ Luther. The Quarterly Review of Economics and Finance 84, 510-515, 2022
The Value of Bitcoin in the Year 2141 (and beyond!)
JR Hendrickson, WJ Luther. The Economics of Blockchain and Cryptocurrency, 51-68, 2022
Cash, crime, and cryptocurrencies
JR Hendrickson, WJ Luther. The Quarterly Review of Economics and Finance 85, 200-207, 2022
Book Review: Money and the Rule of Law: Generality and Predictability in Monetary Institutions
PC Earle. Quarterly Journal of Austrian Economics 24 (4), 2022
General Institutional Considerations of Blockchain and Emerging Applications
PC Earle, DM Waugh. The Emerald Handbook on Cryptoassets: Investment Opportunities and …, 2023
Cryptocurrencies, Blockchain, and Public Choice
RM Yonk, D Waugh. Cryptocurrency Concepts, Technology, and Applications, 2023
Money, Power, and the People: The American Struggle to Make Banking Democratic by Christopher W. Shaw
RE Wright. Journal of Interdisciplinary History 52 (4), 624-626, 2022
Inflation, Tangential Goals, and the Fed’s Dual Mandate
TL Hogan. Cato Institute, 2022
Stephanie Kelton, The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy. New York: public affairs, 2020. Xi +325 pages. 30.00 USD …
TL Hogan. The Review of Austrian Economics, 1-4, 2022
War, money & economy: Inflation and production in the Fed and pre-Fed periods
TL Hogan, DJ Smith. The Review of Austrian Economics, 1-23, 2022
Comment on Docket No. OP-1793,’Principles for Climate-Related Financial Risk Management for Large Financial Institutions’
TL Hogan. OP-1793,’Principles for Climate-Related Financial Risk Management for Large …, 2023
Books
