Most economists believe that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money, which must be accommodated.

Failing to do so, it is maintained, will lead to a decline in the prices of goods and services, which in turn will destabilize the economy and lead to an economic recession or, even worse, depression.

Since growth in money supply is of such importance, it is not surprising that economists are continuously searching for the right, or the optimum, growth rate of the money supply.

Socialism leads to the politicization of society. Hardly anything can be worse for the production of wealth.

[Building the New American Economy: Smart, Fair, and Sustainable. By Jeffrey D. Sachs. Columbia University Press, 2017. Xx + 130 pages.]

Time and time again, these pages have listed numerous benefits of automation and robotics. The discussions point out that mechanization doesn’t make us poor, that attempting to tax machines is counter-productive.

Regarding the Fed’s balance sheet shrinkage narrative, one of the concerns is an unfavorable market response. The bond market (to the extent an actual market even exists) in 2013 panicked when the Fed began to taper it’s asset purchases. While many are concerned the markets could panic, Fed Vice Chair Stanley Fischer on Monday denied this as a true concern. After all, they’ve been talking about this for some time — even in the FOMC minutes — and the bond market has hardly shrugged.

Today is Tax Day in America. When April 15th happens to fall on a weekend, the IRS generously permits us to extend the filing ritual until the following Monday. But since Monday was a holiday in the District of Columbia known (without irony) as Emancipation Day, we all enjoyed an extra bonus day to comply.

Bill Greene is assistant professor of political science at South Texas College in Weslaco, Texas. Dr. Greene made headlines in 2016 when, as a member of the Electoral College from Texas, he cast his vote for Ron Paul. He recently spoke with us about his vote and his work with Ron Paul and the Mises Institute. 

THE AUSTRIAN: Ron Paul has noted that he first met you in 1988, so it seems you have a long-term interest in freedom and free markets.

The Federal Reserve Bank, also known as “The Fed,” was created in 1913 to regulate the banks and to ensure a stable dollar.

The Fed has strayed from its initial charter and is now the primary enabler of federal deficit spending and debt, which is now almost $20 trillion. The Fed’s primary tool is low interest rates, which distort financial decisions and expand the money supply, which leads to risky economic choices.

Below is the outline for this week’s events and speeches of importance relating to the Fed and its members. 

Monday, April 17

• Fed Vice Chair Stanley Fischer speech in New York at Columbia. The topic is “Monetary Policy Communication.” –5:00pm

Tuesday, April 18

A new program just passed by New York’s state government promises “free tuition” for middle-class students to attend a public college or university in the state. While there are similar programs elsewhere in the US, this is the first to include four-year schools.