Money and Banking

Ships aren’t cheap to purchase. But when financing is abnormally cheap and expectations of future business are rosy, it stands to reason that shipping companies would put in a raft of orders.

If helicopter money is implemented, those who first gain the use of the new money may benefit by increasing consumption before prices rise, while others will see prices rise before they are able or willing to use the money. But the end result will be higher prices but no overall increase in welfare. 

Europe continues to move toward banning physical cash. But, in spite of government claims, it's not about fighting crime. It's about economic control.

The Fed says it's scaling back its Quantitative Easing programs, but it still maintains a huge balance sheet. Unfortunately, the Fed has no plan to really unwind its massive QE programs, and has backed itself into a corner.

Leonidas Zelmanovitz discusses his recent book, The Ontology and Function of Money: The Philosophical Fundamentals of Monetary Institutions.

A successful economy depends on innovative entrepreneurs who are willing to take large risks in return for the chance at great profits.

Central banks are in the business of price controls through monetary policy. But, when monetary policy fails, as it is doing now, central banks may look toward more broad forms of price controls as well.

Simple Janet should have the decency to resign.

The reader should trudge his way through this book for two reasons. First is the explanation for why the purchasing power of money must be defined in terms of consumers’ goods prices, not capital goods. Second, and more importantly, Braun resurrects the subsistence fund doctrine, an integral aspect of business cycle theory and completely neglected by modern writers.

In February, the money supply fell slightly, but remains steady thanks to a continued influx of Treasury deposits at the Fed.