Money and Banks

There is trouble lurking in each of the book’s four chapters. The text gets off on a wrong foot as Bernanke overviews the origins and purposes of the Fed.

August 9, 2014 marks the twenty-fifth anniversary of the signing into law of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 by U.S. President George Herbert Walker Bush. FIRREA was enacted to clean up the savings and loan (S&L) financial debacle of the 1980s. In articles, books, symposia, and papers written in the wake of the debacle, popular media and mainstream financial economists each provided explanations of the debacle. This paper analyzes and rejects these explanations in favor of an alternative based on Ludwig von Mises’s observation that market interventions create unintended consequences that usually lead to more interventions that in turn create new waves of unintended and worsening consequences until no more interventions are possible.

The debate over the Export-Import Bank continues, with the bank’s friends in Congress and other high places claiming that the Bank serves an

Using McDonals’s Big Mac as the standard, the US Dollar looks relative firm compared to some other currencies.

This article has a twofold purpose. Its first goal is to pay tribute to Friedrich von Hayek as an outstanding monetary theorist. Its second objective is to further elaborate, on the ground of Hayek’s main findings,

This article presents two alternative interpretations of the role of banks in the monetary transmission process. The interpretation based on the work of Mises, Hayek, and Rothbard leads to the conclusion that central banking and monetary policy are "generators of the business cycle." The other interpretation presents a Keynesian theory minus the liquidity preference theory of the rate of interest.

In the last twenty years, continual financial innovation has led to the increased use of MMMFs as a substitute for checkable deposits.  While many technical considerations suggest that it

Monetary competition, a result of the abolition of legal tender, would seriously curtail the politization of the euro. But is it possible to completely separate the euro from politics without returning 

That Hayek’s work on money, investment, and business cycle theory should be misunderstood and misrepresented poses nothing new. 

Austrian monetary inflation theory claims that changes in the money supply are disproportionately distributed throughout an economy, and as a result wealth inequality is exacerbated.