Monetary Theory

"We would not expect money to be paper, national, or under the control of any entity."

Few people are aware of what the Federal Reserve System, acting on behalf of the U.S. Government, is doing to their money, writes Hans Sennholz.

Digitization will undoubtedly bring great improvements and new opportunities for peoples’ lives. But digitization also has a downside.

Bob Murphy and Ross McKitrick discuss the government policies, Fed actions, and banking movements that lead up to the 2008 crisis, and why the current economic situation is different. 

Adherents of MMT present their ideas in the form of a hydra. Shoot down one idea and another pops up that is just as preposterous. This is no accident.

Economic growth is not something that just happens. It requires saving. It requires investment and capital accumulation. And it requires the real market process. 

Money velocity's role in forcing up prices is misunderstood because today's monetary "authorities" fail to consider how new money is injected into the economy.

Popular economic wisdom says central banks can counter harmful effects of inflation by raising interest rates. Unfortunately, such moves carry their own forms of misallocation of resources and capital.

The Keynesian "stimulus" policies were suppose to reinvigorate the economy. Instead, they have brought stagflation.

Most people—and especially most economists—not only are ignorant of what money actually is, but how and why it became part of our economy in the first place.