Unconventional monetary policy—characterized by “zero interest rate policy” (ZIRP) and “quantitative easing” (QE), along with macro-prudential regulation—has increased the power of central banks in the United States, Japan, and Europe. In the new issue of Cato Journal, contributors revisit the thinking behind unconventional monetary policy and the “new monetary framework,” make the case for transparent monetary rules versus foggy discretion, and point to the distortions generated by ultra-low interest rates and preferential credit allocation.
When the Danish newspaper Jyllands-Posten published the cartoons of the prophet Muhammad in 2005, Denmark found itself at the center of a global battle about the freedom of speech. The paper’s culture editor, Flemming Rose, defended the decision to print the 12 drawings, and he quickly came to play a central part in the debate about the limitations to freedom of speech in the 21st century. In The Tyranny of Silence, Flemming Rose provides a personal account of an event that has shaped the debate about what it means to be a citizen in a democracy and how to coexist in a world that is increasingly multicultural, multireligious, and multiethnic.
The Cato Institute has released its 2014 Annual Report, which documents a dynamic year of growth and productivity. “Libertarianism is the philosophy of freedom,” Cato’s David Boaz writes in his book, The Libertarian Mind. “It is the indispensable framework for the future.” And as the new report demonstrates, the Cato Institute, thanks largely to the generosity of our Sponsors, is leading the charge to apply this framework across the policy spectrum.
Human Capitalism: How Economic Growth Has Made Us Smarter — and More Unequal
Featuring the author Brink Lindsey, Senior Fellow, Cato Institute; with comments by Reihan Salam, Policy Advisor at Economics 21, Columnist for Reuters Opinion, and Contributing Editor at National Review Online; moderated by David Boaz, Executive Vice President, Cato Institute.
The rise of economic inequality over the past generation has become a hot-button issue. In this e-book Cato senior fellow Brink Lindsey offers a fresh new interpretation of the growing class divide along educational lines. The good news, he argues, is that modern economic growth has made us smarter. Growth breeds social complexity, complexity imposes increasingly heavy demands on our mental capabilities, and people respond by investing heavily in “human capital” — that is, valuable knowledge and skills. In recent decades, however, the connection between economic development and cognitive development has broken down for large segments of American society. The demand for human capital has continued to grow, but the supply has stalled. Lindsey explores the cultural roots of this problem and offers policy prescriptions for reviving broad-based human capital accumulation.