Monetary Economics

James L. Caton

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7/21/21

Why is Monetary Policy Focusing on the Overnight Lending Market?

“Borrowing in the overnight lending market allows for the Federal Reserve to access a larger pool of funds from a diversity of financial institutions. As a result, the Fed can borrow these funds at lower rates and avoid attracting negative attention that would be generated by an increase in the interest rate target and the…
Thomas L. Hogan

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7/16/21

Not Smart Financial Regulation

“U.S. financial regulators approved the NSFR despite the fact that their own evidence showed the costs of the rule exceed its benefits. That’s Not Smart Financial Regulation.” ~ Thomas L. Hogan
Ethan Yang

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7/7/21

A Conversation on Monetary Policy During the Covid Era

“On this episode of the Authors Corner, Ethan Yang interviews AIER Senior Fellow Dr. Tom Hogan on the radical developments that have characterized US monetary policy and the future of money.” ~ AIER
Alexander W. Salter

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7/3/21

Enough About Interest Rates!

“We need to change the public conversation surrounding monetary policy. Talking about the Fed’s activities in terms of interest rates is easy, but deeply flawed. It is better to keep an eye on more relevant variables, like the overall size of the balance sheet.” ~ Alexander William Salter
William J. Luther

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6/30/21

Remembering Steve Horwitz

“It is difficult to think about the world getting better and better when dealing with the loss of a friend. But I am sure Steve would continue to insist that it is. Deep down, I know he is right. Indeed, it has never been easier to remember and celebrate the lives of those who have…
Thomas L. Hogan

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6/30/21

Is Inflation Below the Fed’s Target? Yes and No.

“Adjusting for oil and auto prices puts the rate of inflation below the Fed’s 2 percent average target rate. Still, high rates of NGDP growth and mounting bank reserves should cause Fed officials to be leery of high inflation going forward.” ~ Thomas L. Hogan
William J. Luther

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6/21/21

The Decentralization Fetish

“We must not merely assume that decentralization is always good and more-decentralized solutions are always better. Instead, we should recognize that it depends on the unique benefits of decentralization and the costs of realizing those benefits relative to more-centralized alternatives.” ~ William J. Luther
Thomas L. Hogan

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6/20/21

Did the Fed Just Raise Interest Rates?

“In the Fed’s current floor system, the rate of IOR is the key tool of monetary policy. If the Fed raised the rate of IOR, then it raised interest rates.” ~ Thomas L. Hogan
Erik Voorhees

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6/19/21

Decentralized Cryptocurrency Systems and Hayek’s Unplanned Economy

“Pure free market money is emerging upon the world to compete from a position of zero against a Goliath establishment. If it wins, the debate is settled. With luck, but thankfully without the permission of any planner, we all get to witness Hayek’s ideal of decentralization bear out across financial markets in all of the…
Alexander W. Salter

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6/18/21

Reining In the Fed

“We know all too well that when it comes to bureaucratic mission creep, it’s incredibly difficult to put the genie back in the bottle. That’s why we must work to right the Fed’s course starting now. Its roles in fighting recessions and preventing financial panics are too important to be hijacked by partisanship.” ~ Alexander…