Central Banks now pay interest on bank reserves held at the Fed. It may sound like only a minor change, barely worthy of notice, but it's actually a very recent and radical experiment for central banks, with large implications for monetary freedom.
Robert Luddy explains today at The American Spectator how the Fed's fixation on promoting price inflation is a big problem.
Paul-Martin Foss explains how Mises and Rothbard understood the function of interest rates, as opposed to how central bankers use interest rates as a tool to stimulate aggregate demand.
This little known chart is the Fed's attempt to anticipate a recession in the US economy. The reading from last November is only 3.84%, but that is higher than all but 3 months when a recession did not immediately proceed.
Thanks to our bankrupt economic policies, faith in our regime will soon be shaken whether we like it or not. Fortunately, we don't need a majority to make some changes for the better, writes Ron Paul.
Global markets are showing they can't handle even a tiny bit of tightening by the Federal Reserve, and other central banks are doubling down on rock-bottom interest rates, writes David Haggith. After six years of "recovery" can we ever abandon endless easy money?
Rather than thinking outside the very little teeny tiny box that academic elites have crammed themselves into, it's far easier for those academics to go with what they know and engage in self-serving and circular arguments.
Negative rates will fail because the problem with the economy is not a problem of too little consumption or demand. The problem stems from a distorted economy caused by manipulated interest rates.
