Monetary Economics

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

The Daily Economy4/14/26

Taxing, Borrowing, and Printing: Three Ways America Pays for Government

Tax bills are only the beginning. Borrowing and inflation also finance federal spending — in ways that are easier to ignore but harder to escape.

The Daily Economy4/13/26

The Housing Crisis Is a Supply Problem

Rising prices make us look for someone to blame, but the broken market has a simple cause: it's illegal to build enough homes.

The Daily Economy4/10/26

Headline Inflation Surged in March, but Core Remained Muted

March’s inflation spike looks alarming, but it's driven entirely by energy shocks. Strip that out and the trend looks largely unchanged.

The Daily Economy3/27/26

Why Gold Continues to Buck Trends and Outperform Stocks

Geopolitical tensions and the global financial system have changed dramatically since 2000. Markets rise and fall; what's propelling gold?

The Daily Economy3/26/26

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.

The Daily Economy3/23/26

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 Daily Economy3/23/26

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.

The Daily Economy3/20/26

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.

The Daily Economy3/17/26

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.