Austrian Business Cycle Theory, banking theory, central banks, fractional reserve banking, money supply

Several times on these pages (e.g., here and here), and elsewhere (e.g., here and here) I've tried to refute the claim, championed by certain Austrian-school economists and their many fans, that fractional-reserve banking is inherently fraudulent, because whenever the sum of readily-redeemable bank deposit balances and (when…

monetary base, money supply, Open Market Operations, repos, reverse repos

In previous installments of this primer I've tried to convince you, first, that monetary policy is ultimately about keeping the available quantity of money from differing substantially, if only temporarily, from the quantity demanded and, second, that doing this boils down in practice to having a money…