cracking dollar

In a thought-provoking article published by the IMF in April, Ruchir Agarwal and Miles Kimball argue for moving away from a “paper money standard” and toward an "electronic money standard." The promised benefits include shorter recessions and lower average inflation. These benefits are said to result from…

Populism and the Future of the Fed

The distinguished contributors to Populism and the Future of the Fed examine populist demands to expand the Fed’s mandate and the threat to the demarcation between fiscal and monetary policy.  All the essays, except those by Charles Plosser and me, stem from Cato’s 39th Annual Monetary Conference,…

stack of books

In December 1946, Clark Warburton published an article in the Political Science Quarterly titled, “Monetary Control under the Federal Reserve Act,” which was reprinted in chapter 14 of his landmark book, Depression, Inflation, and Monetary Policy (1966). He argues that the Federal Reserve’s failure to prevent the…

(Previous installments of "The Keynesian Myth" are here and here.) Balancing Act As Richard Adelstein (1991, p. 177) observes, far from taking Keynes's advice that he ratchet-up the federal government's deficit spending, "Roosevelt held fast to the ideal of a balanced budget and remained the chief opponent…

(The first installment of "The Keynesian Myth"  is here.) All-American Money Makers Although conventional wisdom has it that Keynes considered government spending far more capable of ending the depression than monetary expansion, that certainly wasn't his view in 1931: during lectures he gave then at the University…