Gerald P O'Driscoll, Author at Alt-M

About Gerald P O'Driscoll

Gerald O’Driscoll is a senior fellow at the Cato Institute. He is a widely quoted expert on international monetary and financial issues. Previously the director of the Center for International Trade and Economics at the Heritage Foundation, O’Driscoll was senior editor of the annual Index of Economic Freedom, co-published by Heritage and The Wall Street Journal. He has also served as vice president and director of policy analysis at Citigroup. Before that, he was vice president and economic advisor at the Federal Reserve Bank of Dallas. He also served as staff director of the Congessionally mandated Meltzer Commission on international financial institutions. O’Driscoll has taught at UCSB, Iowa State University and New York University. He is widely published in leading publications, including The Wall Street Journal. He appears frequently on national radio and television, including Fox Business News, CNBC and Bloomberg. He is a member of the Mont Pelerin Society, and is a director of the Association of Private Enterprise Education. O’Driscoll holds a B.A. in economics from Fordham University, and an M.A. and Ph.D in economics from UCLA.

Bretton Woods. Gold standard, NGDP targeting, sound money

Commodity Money, Economic Thought, Fiat Money

Sound Money in Theory and Practice

Gerald P O'Driscoll/June 9, 2016June 8, 2016 /5 Comments

In this commentary, I will analyze the concept of sound money and its relevance today. The concept evolved in the 19th century as many countries adopted the gold standard. It became associated with commodity money or "hard currency." For example, Mises (1966: 782) stated: The principle of…

interest on reserves, interest rate rise, monetary policy, reverse repos

Money & Politics, News, The Fed & Central Banks

The Fed Acts

Gerald P O'Driscoll/December 14, 2015December 19, 2015 /Leave a comment

The Federal Reserve is set to act this week to raise short-term interest rates. There are a number of technical and policy questions raised by this long-anticipated decision. The Fed conventionally raises short-term interest rates by selling short-term Treasury obligations. It no longer owns any short-term Treasuries…

O'Driscoll, knowledge problem, monetary conference, central banks, Hayek, Milton Friedman

Economic Thought, Events, The Fed & Central Banks

What is "Optimal" Monetary Policy?

Gerald P O'Driscoll/November 9, 2015December 19, 2015 /1 Comment

On Thursday, November 12th, Cato hosts its 33rd Annual Monetary Conference. This year's conference theme is "Rethinking Monetary Policy." I will be presenting a paper on "Monetary Policy: The Knowledge Problem." The knowledge problem in conducting monetary policy, or any other government policy, is that the required…

Fed divided, FOMC, rate rise, interest rates

Inflation & Deflation, The Fed & Central Banks

A Fed Divided

Gerald P O'Driscoll/October 26, 2015December 19, 2015 /1 Comment

Markets once again are waiting breathlessly for a decision on short-term interest rates by the FOMC, the Federal Reserve's monetary policy making arm. All signs point to no change in interest rates. More interesting is a possible change in how members of the FOMC are thinking about…

Hayek, knowledge problem, monetary policy, monetary rules

Economic Thought

Monetary Rules: Solving the Knowledge Problem

Gerald P O'Driscoll/August 25, 2015December 19, 2015 /10 Comments

In its "Free Exchange" column, the Economist recently took up the issue of monetary rules. Provocatively titled "Rule It Out," the column announced that "setting interest rates according to a fixed formula is a bad idea." Reading the column one quickly learns the author doesn't understand what…