deflation, interest on reserves, NGDP targeting, price level, productivity norm

CMFA Director George Selgin recently appeared on David Beckworth’s new podcast series, Macro Musings.  Selgin and Beckworth primarily speak about the “productivity norm,” the idea that changes in the price level should mirror changes in productivity.  The productivity norm is one version of a monetary policy that…

deflation, inflation, price level, productivity, velocity of money

Changes in the general level of prices are capable, as we've seen, of eliminating shortages or surpluses of money, by adding to or subtracting from the purchasing power of existing money holdings.  But because such changes place an extra burden on the price system, increasing the likelihood…

Chinese monetary history, communism, government debt financing, inflationary spiral, The Knowledge Problem

The history of China’s banking system in the first half of the 20th century offers powerful insights into the conduct of monetary policy and the consequences of government intrusion into banking and monetary institutions that are well worth considering today.  Monetary economists and monetary historians would do…