Money and Banks

Patrick Barron explains how and why negative interest rates arise.

The Fed says it can use a "neutral interest rate" to set policy. But, Fed economists don't understand how the neutral rate works.

At different times and in different places, Fed officials have changed their stories about whether or not bubbles can be seen before they pop.

Negative rates can work because the opportunity cost of holding physical cash is not zero. Abolishing large banknotes further increases the cost.

In his new book, central banker Mervyn King sometimes sounds like Murray Rothbard. But in the end he continues the problem of central banking control.

A general increase in price inflation, resulting from increasing money supply and a fall in real wealth, will lead to a general rise in interest rates.

If the US dollar begins to return to monetary sanity — for now — other currencies will face grave threats to their monetary status quo.

Even without ending the Fed, there are several steps that the Trump administration can take toward improving monetary policy.

Easy-money policies destroys wealth and lead to unemployment. When money creation is limited, wealth and employment expand.

Michael Pence seems to be under the mistaken impression that the United States has an unregulated free market economy.