Money and Banks

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.

Speculation is swirling as to what the Federal Reserve might do next. None of the likely next steps are terribly promising.

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.

Jeff Deist and Jay Taylor discuss how both central banks and commercial banks are poised to change your life in some very unpleasant ways.

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.

In the Fed’s desperation to hold off the coming pain, will Yellen start listening to Ben Bernanke and embrace the absurdity of negative interest rates? We are already seeing the consequences of such policy play out in Switzerland, Germany, and Japan.

The recent FOMC decision on Fed policy going forward was not unanimous. Let's take a look at who voted against the rest of the committee.

Jeff Deist discusses Austrian economics and the bizarre world of negative interest rates.