Overview for monetary-policy

Premature Euro-Skeptics

The New York Times' profile of Euro-skeptic Bernard Connolly--who warned early of the danger of creating a single currency for a polyglot continent--is one more reminder of the enduring force of the old common-law rule: truth is not only no defense; truth actually compounds libel. People …

Written by David Frum on Friday November 18, 2011

`In Time' is a Parable Against Tight Money

I can't recommend the new Justin Timberlake and Amanda Seyfried sci-fi action thriller In Time on the basis of its acting or plot (both are mediocre) but I can recommend the film as a parable about bad monetary policy. Here is the premise of the film: in the future, humans are genetically …

Written by Noah Kristula-Green on Monday October 31, 2011

Still Sound as a Dollar

Conservatives nowadays routinely worry about the dollar’s strength and stability . The dollar, however, refuses to cooperate. Instead, it lately has been rising in foreign-exchange markets, as it typically does in times of international economic and financial stress. The dollar serves as …

Written by Kenneth Silber on Friday September 23, 2011

The Hobgoblin of Little Minds

At the end of the 1980s, the US was hit by a severe financial shock: the Savings & Loan crisis. I'll spare you the antique details of the crisis, but in 1990 the US found itself looking at perhaps $200 billion in federally insured bad loans by the failed S&L industry. The economy slipped …

Written by David Frum on Wednesday September 21, 2011

Nominal Growth Targeting ...

... sounds technical doesn't it? But those dry words represent a direct challenge to the GOP's current deflationary orthodoxy. Bravo to NRO for offering space to an economist to make the case. It’s time for conservative politicians to be bold and serious about monetary policy and not simply …

Written by David Frum on Tuesday September 13, 2011

Red Gold

During Hurricane Irene, I took some time to read Barry Eichengreen's overview of international monetary history: em> Exorbitant Privilege

Written by Noah Kristula-Green on Monday August 29, 2011

Nice Central Bank You Have Here

One of the highest forms of political jiu-jitsu is to accuse your opponents of exactly the same offense that you yourself then proceed to commit. If executed properly, the audacious maneuver will stun critics into silence - and overwhelm spectators so impressed by the Parson's sermon against …

Written by David Frum on Monday August 22, 2011

How America's First Central Bank Was Killed

Amid current political pressures to abolish the Fed, Independence Day weekend is a good time to look back at the end of the Fed’s early precursor. This year is the 200th anniversary of a political fight that terminated the Bank of the United States, the nation’s long-ago central bank. Amid …

Written by Kenneth Silber on Sunday July 3, 2011

Noah and Conn Debate Cranks in the GOP

On Monday, I recorded a bloggingheads with the Washington Examiner’s Conn Carroll. We discussed the GOP field and whether cranks should be welcomed into the party. On Monday, I recorded a bloggingheads with the Washington Examiner’s Conn Carroll. We discussed the current state of the GOP …

Written by Noah Kristula-Green on Wednesday June 22, 2011

Want Big Budget Cuts? Weaken the Dollar

Republicans promise that rapid action to cut government spending will return us to prosperity. But their approach may not work if they also call for a strong dollar. Republicans promise that rapid action to cut government spending will lead to a quick return to prosperity. They have some …

Written by Tessa Berenson on Tuesday May 31, 2011

A Get Rich Slow Scheme

A cheap dollar is no fun for Americans, but as my latest column for The Week points out: it may bring us out of our recession. A cheap dollar is no fun for Americans, but as my latest column for The Week points out: it may bring us out of our recession. Work more. Save more. Export more. …

Written by David Frum on Wednesday May 18, 2011

Bernanke's Toughest Job: Selling the Fed

Next week, Ben Bernanke will do something new: hold a press conference. But will this fresh round of openness make the Fed more popular with the public? Next week, Ben Bernanke will do something no Fed Chairman has ever done before: hold a press conference after the conclusion of the Fed’s FOMC …

Written by Noah Kristula-Green on Saturday April 23, 2011

Debt Debate: What Would Hamilton Do?

To get a fresh perspective, I attempted to contact the spirit of Alexander Hamilton for his take on the current political and economic debates in Washington. To get some perspective on current political and economic debates, I attempted to contact the spirit of Alexander Hamilton by resetting …

Written by Kenneth Silber on Tuesday April 19, 2011

Pawlenty Jumps on the Anti-Fed Bandwagon

Pawlenty's receiving criticism for claiming that the injection of “fiat money” into the economy has weakened it. But this isn’t the worst thing he’s said on monetary policy. Tim Pawlenty is receiving a lot of criticism for comments he made about monetary policy on Morning Joe , when he argued …

Written by Noah Kristula-Green on Wednesday March 30, 2011

The Trouble with Gold Bugs

If it's socialism for government to fix the price of copper, how is it libertarianism for government to fix the price of gold? ... is splendidly summed up in today's House testimony by Lewis Lehrman. A dollar convertible to gold would provide the necessary Federal Reserve discipline to …

Written by David Frum on Wednesday March 16, 2011