Monetary Policy

Don’t Believe Government about Price Inflation

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It is an old adage that there are lies, damn lies and then there are statistics. Nowhere is this truer that in the government’s monthly Consumer Price Index (CPI) that tracks the prices for a selected “basket” of goods to determine changes in people’s cost-of-living and, therefore, the degree of price inflation in the American economy. On August 19th, the ... [click for more]

The U.S. Embrace of Monetary Tyranny, Part 1

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Part 1 | Part 2 | Part 3 The rise of Bitcoin as an alternative currency raises some important questions about America’s monetary system. Why does the United States have a fiat-money system — that is, a system of irredeemable paper currency? Why aren’t Americans free to use any money they want? What is ... [click for more]

Fed Follies: Central Bank Continues to Force Economy in Wrong Direction

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For more than a decade, now, Federal Reserve policy has been guided by the fear of one economic bogyman: the presumed danger of “price deflation.” The fear is unfounded and the inflationary “solution” only leads to disaster. During Alan Greenspan’s and Ben Bernanke’s watches at the helm of America’s central bank and now under Janet Yellen, the claim has been ... [click for more]

Federal Reserve Policies Cause Booms and Busts

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Since the economic crisis of 2008-2009, the Federal Reserve – America’s central bank – has expanded the money supply in the banking system by over $4 trillion, and has manipulated key interest rates to keep them so artificially low that when adjusted for price inflation, several of them have been actually negative. We should not be surprised if this ... [click for more]

The Business Cycle Explained

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It Didn’t Have to Be This Way: Why Boom and Bust Is Unnecessary — and How the Austrian School of Economics Breaks the Cycle by Harry C. Veryser (Intercollegiate Studies Institute 2012), 318 pages. This is one instance where a book’s subtitle tells the reader much more about its content than the title does. You know at once ... [click for more]

Money and the Constitution

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Constitutional Money: A Review of the Supreme Court’s Monetary Decisions by Richard H. Timberlake (Cambridge University Press and Cato Institute 2013), 257 pages. Most Americans would be surprised to learn that the Federal Reserve Notes in their wallets and the balances in their various accounts are not constitutional money. Yes, what they have is money, but not the kind ... [click for more]

One Hundred Years of the Federal Reserve

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Two days before Christmas 1913, President Woodrow Wilson signed the Federal Reserve Act, creating America’s latest and current central bank, the Federal Reserve System. It’s a sobering thought that in the 100 years since the Fed’s creation, the dollar has lost 95 percent of its value. Had the Fed never been created, America would be dotted with Nickel Stores ... [click for more]

One Hundred Years of the Federal Reserve

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Two days before Christmas 1913, President Woodrow Wilson signed the Federal Reserve Act, creating America’s latest and current central bank, the Federal Reserve System. It’s a sobering thought that in the 100 years since the Fed’s creation, the dollar has lost 95 percent of its value. Had the Fed never been created, America would be dotted with Nickel Stores ... [click for more]

Inflation Is the Last Thing We Need

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“Some economists say more inflation is just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment,” the New York Times reports. One is Harvard economist Kenneth S. Rogoff, quoted in the Times: “Weighed against the political, social and economic risks of continued slow growth after a once-in-a-century financial crisis, a sustained ... [click for more]

Delete the Fed

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Who should run the Federal Reserve System when chairman Ben Bernanke’s term expires next year: Vice Chair Janet Yellen or former Obama adviser Lawrence Summers? Neither. Who then? No one. The fact is, we need the Federal Reserve like we need a hole in the head. Contrary to folklore, the Fed is not needed to stabilize the economy or to prevent unemployment. As ... [click for more]
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