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
-
Prices Decline in May, Monetary Policy Tightens
“Prices today are 8.9 percentage points higher than they would have been had the Fed hit its 2-percent inflation target since January 2020.”
-
There’s No Good Reason to Raise the Inflation Target
“Why not give the central bank a wider berth, if it helps to stabilize the economy? Because it doesn’t actually help. Interest rates are a distraction.” ~Alexander W. Salter
-
FOMC Holds Rates, Revises Forward Guidance
“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther
-
Prices Stable in May: Time to Cut Rates?
“M2, the most commonly cited measure of the money supply, is up 0.53 percent from a year ago. Since real income and population are growing faster than this, current M2 growth also suggests money is tight. But this is speculative.” ~Alexander W. Salter
-
|
Harwood Economic Review 90 Years of New Perils
AIER’s dedication to classical liberalism drives us to address both long standing and unforeseen challenges to American values. This issue tackles emergent threats to freedom: wokism, growing Fed mandates, and ESG among others. As threats to liberty expand, our commitment to safeguarding fundamental American ideals does as well.
-
|
90 Years of New Deals
The intellectual progeny of the New Deal continue to surface in American economic and political discourse: the Fair Deal, the New Frontier, the Great Society, the Freedom Agenda, Build Back Better, and others. But just as upon our 1933 inception we fiercely opposed their progenitor, ninety years later AIER remains every bit in the fight.
-
CEA Deserves an F on Bitcoin Mining Tax Analysis
“The CEA’s argument would result in a failure on an introductory microeconomics exam. One expects better from a team of professional economists.” ~ Joshua R. Hendrickson
-
Bank Term Funding Program Discounts the Discount Window
“The Fed says it created BTFP to ‘support American businesses and households.’ But those businesses and households will ultimately be on the hook if the Fed’s risk-taking turns out to be too much.” ~ Nicolás Cachanosky
-
Federal Reserve Raises Rate Target, Likely To Pause For Some Time
“In March, the median FOMC member projected the federal funds rate target would close the year above 5.0 percent. But the federal funds futures market is pricing in better-than-even odds that the target rate is less than 5.0 percent following the September meeting.” ~ William J. Luther
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
The Value of Bitcoin in the Year 2141 (and beyond!)
JR Hendrickson, WJ Luther. The Economics of Blockchain and Cryptocurrency, 51-68, 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
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
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
Inflation, Tangential Goals, and the Fed’s Dual Mandate
TL Hogan. Cato Institute, 2022
Books
