Monetary Theory

Recorded at the Mises Institute in Auburn, Alabama, on 24 July 2015.

I’d like to think Mises would have spared a few minutes of his precious time “exploding the fallacy”—an often used expression in his writings—of Bernanke’s most recent musings.

The European Central Bank is continuing with its negative interest rate policy, but it's not having the desired effect. Instead, the central bank is just filling the void by buying up government debt with newly created money.

It is hardly a relief for British households that £100 worth of consumer goods will now cost them around £99.90, when other prices in the UK economy are experiencing a rapid inflation. 

Joseph Salerno's paper "A Modest Proposal for Reining in the Bernanke Fed" is now in the Top 10 in downloads on the Social Science Research Network (SSRN) in the category of "Response to Financial Crisis." (no kidding!) SSRN is the primary depository of working paper in economics and the social sciences. You can download Joe's paper here for free.

Europeans have long been fearful of the prospects of price deflation, but now that it has arrived they have embraced it.

The Fed has been messing with interest rates for a century and suddenly they have forgotten how to raise interest rates?

Central banks and their favorite economists are everywhere worried that central banks may be too weak to keep the current “expansion” going. If central banks are too weak now, what will happen when they get the strength they want?

In this interview, Mark Thornton talks to host Scott Horton about how we are much better off without the fed,

Many people think of their investments and their money in the bank as their savings, but savings and money are not the same thing. Nor will creating more money create more savings.