Deeply negative nominal rates are on their way
Growing evidence of a severe global recession is sure to provoke more aggressive monetary policies from central banks. They had hoped to have the…
Read MoreCentral Banking
The Bank’s ‘Stress’ Tests
My report on the Bank of England’s latest (November 2018) stress tests was published by the Adam Smith Institute on August 3rd. The purpose of the stress tests…
Read MoreThe Coming Regime of the ECB: Radical Centrism
There is a changing of the guard at the European Central Bank this year with two important new appointments. Philip Lane, the governor of…
Read MoreFed chairman and the Phillips curve
On July 11, 2019 before the Senate Banking Committee, the Federal Reserve Board Chairman Jerome Powell said that the relationship between unemployment and…
Read MoreInterest Rates, Global Value Chains and Bank Reserve Requirements
Interest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
Read MoreWho determines interest rates?
For most experts the central bank determines short- term interest rates by setting the target to the benchmark policy rate such as the…
Read MoreMises on 100-Percent Reserve Banking
By Edward W. Fuller Economists debate whether Ludwig von Mises advocated free banking or 100 percent reserve banking. This debate is significant. Mises states, “the…
Read MoreChapter 9: Reform
Anyone reading this probably already feels that reform would be a good idea. On paper, reform would be a simple matter: merely cancelling unjust…
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Economic stability and economic growth
During the period 1920 to 1960, we can observe that the annual growth rate of production was more volatile than between the…
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Debasing the Baseless – Modern Monetary Theory
Populist politicians are turning to Modern Monetary Theory Fiscal stimulus has not led to significant inflation during the last decade MMT is too…
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