Monetary Policy

The Gold Clause: A Free-Market Gold Standard

by Wendy McElroy December 1, 2020

President Franklin Roosevelt destroyed one of the most valuable uses of gold when he nationalized ownership of the metal in 1933: the gold clause. This value did not return when private ownership of gold was legalized once more in 1974, partly because its use is still discouraged by anti-usury laws. The impact of its sudden absence was dramatized by a ...

Do Not Trust Governments with the Control of Money

by Richard M. Ebeling November 17, 2020

If there is one thing that is fairly certain in this life – besides the seeming inescapability of death and taxes – is that once someone is appointed to almost any position in the political and bureaucratic structures of a government they soon discover how important and essential is the organization of which they are a part for the ...

Paul Krugman’s Ad Hominem Defense of Central Banking

by Richard M. Ebeling August 4, 2020

One of the sorriest aspects of almost all political discussions nowadays is how often they seem to degenerate into rude ad hominem attacks rather than more reasoned arguments over the pros and cons of what public policies might be most conducive to achieving various social and economic goals. An example of this is an opinion piece by economist Paul Krugman ...

Gold and Free Banking versus Central Banking

by Richard M. Ebeling July 28, 2020

In spite of the officially declared “independence” of the Federal Reserve from the immediate political control of either Congress or the White House, America’s central bank is, nonetheless, a branch of the U.S. government that is responsible for setting monetary policy, overseeing a variety of banking regulations, and influencing market interest rates. As a result, politics is always present ...

The Money-Printing Gods Have Failed

by David Stockman March 17, 2020

Hooray! Finally even the robo-machines and day traders are puking, not BTFDing. Today’s 3,000 Dow Point Dump says even they have had enough of the craven dolts who occupy the Eccles Building. You do not need an PhD in economics—or even a night school survey course—to see that COVID-19 is temporary supply side shock which 0.05% money market rates are powerless ...

The Technocrats Will Not Save Us

by Richard M. Ebeling February 25, 2020

Besides the certainty, as they say, of death and taxes, one other highly likely event will be an end to the general “good times” of relatively low price inflation and low unemployment in America. In other words, the United States will eventually experience worsening inflation at some point, as well as another general economic downturn. The question is, what ...

Monetary Destruction in America

by Jacob G. Hornberger February 1, 2020

The Constitution made it crystal clear what the official money of the United States was to be when it called the federal government into existence. That money was to be gold coins and silver coins, not paper money. Article 1, Section 10, of the Constitution, which is a restriction on the power of the states, states, “No State shall ... ...

Freedom and Prosperity: The Importance of Sound Money

by Jacob G. Hornberger December 1, 2019

Sound money is a key to a free and prosperous society. That principle was clearly reflected in the monetary system that the Constitution established when it called the federal government into existence. Our ancestors didn’t trust government officials with power. They believed that the greatest threat to their own freedom and well-being lay not with some foreign regime but rather ...

Central Banking Is Central Planning

by Richard M. Ebeling April 25, 2019

At a time when the appeal of and demands for a new “democratic” socialism seem to have caught the imagination of many among the young and are reflected in the promises of a good number of political candidates running for high office, there is one already-existing socialist institution in America with few opponents: the Federal Reserve System. The fact is, ...

The Libertarian Angle: Monetary Central Planning (video)

by Future of Freedom Foundation March 6, 2019

Would the free market allocate money as efficiently as other goods? Of course! FFF president Jacob G. Hornberger and Citadel economics professor Richard M. Ebeling discuss. Go to the podcast.

The Dangers of Negative Interest Rates and a Cashless Economy

by Richard M. Ebeling January 10, 2019

The recent gyrations in the stock market and the uncertainties surrounding American trade policies with China and other parts of the world have raised the question of when the next recession will inevitably follow the current economic recovery from the 2008-9 financial crisis. In the face of a future economic downturn, some economic policy analysts are already making the ...

Government, Gold, and Separating Money From the State

by Richard M. Ebeling October 25, 2018

How long will the current improvement in employment and output growth continue? Will the Federal Reserve’s recent policy of nudging up market interest rates impede growth and employment, or will it act as a damper on possible future price inflation without slowing down the economy or pushing it into a new recession? The news media and policy pundits have been ...