Beware, Dissenter of the Monetary Regime
Tim Duy takes to Bloomberg to warn the world about the possibility of "hard-money" advocates getting into the Fed.
Tim Duy takes to Bloomberg to warn the world about the possibility of "hard-money" advocates getting into the Fed.
In a free market economy, banks would actually have to clear their checks and this would be a deterrent to creating money out of "air."
If a monetary rule like the Taylor Rule is not a solution to the problem of the Fed, what is? Competition.
I argue that hoarding implies a longer period of time between when resources are saved and when new consumer goods reach the market (economic growth).
The Fed keeps hinting that it plans to raise the target rate more than once this year. But, the Fed's level of confidence is near zero.