The Fed

Do we really want central banks that reward insolvency and encourage inefficiency?

It was reported today that Federal Reserve Chairwoman Janet Yellen earns over $200,000 as head of the world’s biggest central bank.

Mark Thornton on PressTV:

Once interest rates begin to rise — and rise they must, whether as a result of Fed policy or not — the end of the asset price inflation will be at hand.  The result will be another financial crisis and accompanying recession.

Full title: “The Global Curse of the Federal Reserve: How Its Monetary Virus Stimulates Destructive Waves of Irrational Exuberance and Depres

Richard Ebeling explains the basics of how central banks cause booms and busts.

Long-term interest rates are going down, but many Fed observers, relying on expectations theory, wrongly think they should be going up. If we understand Mises and time preference, however, we can see the true trend much more clearly.

There is no one Taylor Rule, but several, depending on how one interprets the government's measurements of the economy. Taylor's rule also fails to address the fundamental problem of coordinating the actions of many diverse individuals in an economy, so it cannot protect us from malinvestment and bubbles.

Jeff Deist and David Howden discuss the history of banking in America before 1913 and the entanglements of the Federal Reserve.