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Tag Archives: Reserve
Krugman on Price Stability and Deflation
Krugman writes on disinflation versus deflation, and how the former is more frequent than the latter. He then suggests the Federal Reserve should temporarily drop its role of achieving price stability, instead focusing on full employment. I argue that the Fed should step off altogether. Continue reading
Posted in Theory
Tagged deflation, disinflation, Federal, inflation, monetary, policy, Reserve
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Fed Set on Debt Monetization
The Federal Reserve begins to monetize government debt, hoping to combat deflation. Continue reading
Posted in Current Events
Tagged debt, Federal, Government, monetization, Reserve, spending
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Interest Rates: 1920-21 Depression
A rise in the discount rate does not necessarily suggest a decrease in the supply of money, or even a fall in the pace of expansion. Any objective look at the Depression of 1920 should not focus only on the Federal Reserve’s discount rate. Continue reading
The Fed and Economic Stability
Cristina Romer shows that the post-war era was not much more stable than the pre-war era, even the periods prior to the foundation of the Federal Reserve. Furthermore, statistics in Romer’s paper shows how the “Long Depression” of the late-19th century was actually an era of economic prosperity. Continue reading
Posted in History
Tagged Cristina, Depression, Economic, Federal, long, Reserve, Romer, stability
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Déjà vu?
The current global debt crisis is looking very similar to that of the 1930s. Continue reading
Posted in Current Events
Tagged bankruptcy, borrowing, debt, default, europe, Federal, Government, lending, Reserve, sovereign
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Jon Stewart on Banks, Deposits and Money
Some excellent quotes on fractional-reserve banking and regulation. Continue reading
Posted in Miscellaneous
Tagged banking, banks, Daily, fractional, Jon, money, Reserve, Show, Stewart
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There is no hope…
Paul Krugman shows his colors, and many of his readers don’t have any clue on economic theory or logic. Continue reading
Hayek, the Business Cycle and the Financial System
In “Monetary Theory and the Trade Cycle” Hayek holds that the business cycle is caused by fractional-reserve banking, which is a natural credit organization formed out of the market. If this is the case, then it follows that economic cycles are an intrinsic part of capitalism. Continue reading
The Dangerous “Lessons” of 1937
The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road. Continue reading
Ending the Bank Failure
A 30 April letter to the editor of the New York Times on bank failures, the bank tax and the elimination of the Federal Reserve. Continue reading →