Monetary Policy

Fed Chairman Kevin Warsh has raised the Fed’s discount rate—to the chagrin of President Trump—but it is doubtful Warsh’s actions will be effective against inflation.

Mainstream economics does a disservice when students are taught that money is a medium of exchange, a store of value, and a unit of account without explaining why and how money came to function in those categories.

Mainstream economics does a disservice when students are taught that money is a medium of exchange, a store of value, and a unit of account without explaining why and how money came to function in those categories.

The chalkboard is the test. When Nigerian traders start painting their prices again, the reform will have worked, and no statistical release will be needed to confirm it.

While the government tells us that inflation is down because the CPI says so, there is another metric that tells a different story: measurement by gold prices.

With an election just six weeks away, we can count on the Federal Reserve to open the money spigots to bolster the economy. We will pay later—but we will pay.

Since fiat currencies, per se, are not redeemable for anything other than themselves, their very existence depends upon confidence.

The US economy these days seems to have a distinctive “K” shape, with asset owners riding the upward slope and everyone else the downward slope. But, while true, the reason for this situation is not what the ruling classes are claiming. The Austrians have the better explanation.

As the Federal Reserve desperately tries to force down interest rates of long-term US bonds, we should remember that the only way for those rates to effectively drop is for American savers to lower their time preferences.

Monetary authorities are wanting to remove currency and coin from the economy altogether and just have electronic transfers. That would be a mistake that would damage the free market.