Deeply negative nominal rates are on their way
byGrowing evidence of a severe global recession is sure to provoke more aggressive monetary policies from central banks. They had hoped to have the…
Central Banking
The Bank’s ‘Stress’ Tests
byMy report on the Bank of England’s latest (November 2018) stress tests was published by the Adam Smith Institute on August 3rd. The purpose of the stress tests…
The Coming Regime of the ECB: Radical Centrism
byThere is a changing of the guard at the European Central Bank this year with two important new appointments. Philip Lane, the governor of…
Fed chairman and the Phillips curve
byOn July 11, 2019 before the Senate Banking Committee, the Federal Reserve Board Chairman Jerome Powell said that the relationship between unemployment and…
Interest Rates, Global Value Chains and Bank Reserve Requirements
byInterest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
Who determines interest rates?
byFor most experts the central bank determines short- term interest rates by setting the target to the benchmark policy rate such as the…
Mises on 100-Percent Reserve Banking
byBy Edward W. Fuller Economists debate whether Ludwig von Mises advocated free banking or 100 percent reserve banking. This debate is significant. Mises states, “the…
Chapter 9: Reform
byAnyone reading this probably already feels that reform would be a good idea. On paper, reform would be a simple matter: merely cancelling unjust…
Economic stability and economic growth
byDuring the period 1920 to 1960, we can observe that the annual growth rate of production was more volatile than between the…
Debasing the Baseless – Modern Monetary Theory
byPopulist politicians are turning to Modern Monetary Theory Fiscal stimulus has not led to significant inflation during the last decade MMT is too…