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If it is generally agreed that in the long run inflation is a monetary phenomenon, then the simple answer to the question of whether the Fed can control money is—from my point of view—that I certain...
Some people might wonder why the Federal Reserve’s policymaking function would interest anyone at this particular point in history. After all, the general economic and financial picture at present ...
The Split between Fed Power and Accountability There is a fundamental problem with the Fed’s policymaking function. Under the U.S. Constitution, government is not supposed to convey power without a...
The Market for Fed Watching The Federal Reserve’s Open MarketCommittee consists ofa dozen unelected officials with enormous unguided authority to affect interest rates, exchange rates, and prices, ...
This paper examines central banking in general and the Federal Reserve system in particular from the perspective of the theory of public choice. It is common to rationalize central banking as being ...
Few topics ineconomics generate more disagreement than the question of monetary policy. No consensus appears to be emerging as more and more theories and proposals appear. Economists disagree overw...
Regulatory restructuring has surfaced again in political and academic debates in and around Washington. This is not a new topic. Proposals for a more efficient, a more responsive, or just a differen...
DOES THE FED ABHOR INFLATION?     FED  INFLATION  monetary policy       2008/11/12
Current discussions of monetary policy have the Fed being virtually single-minded in its resolve not to let the inflation bogey out of the bottle. Yet this concern is relatively recent, dating from ...
It should now be clear that the Federal Reserve caused, or at least accommodated, the bubble in aggregate nominal demand from early 1998 through early 2000. Moreover, the Federal Reserve chose to w...
Is the United States headed for an unprecedented economic disaster? The fact that prominent economists are posing that question says something about what they may be expecting. For example, in the ...
The United States faces a fiscal policy disaster. As is now becoming more widely appreciated, spending commitments under current laws and policy will outstrip the ability of conventional tax-based f...
The key issue in addressing the topic of what to do in the event of a financial crisis is time inconsistency. It seems to make sense in the middle of a financial crisis for someone to bail out a fai...
The Making of Monetary Policy Montagu Norman, the governor of the Bank of England from 1921 to 1944, reputedly took as his personal motto, “Never explain, never excuse.” Norman’s aphorism exemplifi...

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