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 2015 Annual Report, which documents a dynamic year of growth and productivity. The thousands of individuals who contribute to Cato are passionate about freedom and committed to ensuring that future generations enjoy the blessings of liberty, unencumbered by an overreaching state that seeks to control their lives. This is Cato’s optimistic vision for the future, and it would be unimaginable without the Institute’s longstanding partnership with its Sponsors. We will continue our diligence and dedication to seeing this vision realized.
Why Nations Fail: The Origins of Power, Prosperity, and Poverty
Featuring the coauthor Daron Acemoglu, Killian Professor of Economics, Massachusetts Institute of Technology; with comments by Karla Hoff, Senior Research Economist, Development Economics Group, World Bank; moderated by Ian Vasquez, Director, Center for Global Liberty and Prosperity, Cato Institute.
Institutions — not geography, culture, or other factors — explain why some nations succeed and others fail. So says Daron Acemoglu in an ambitious new book drawing evidence from thousands of years of human history and from societies as diverse as those of the Inca Empire, 17th century England, and contemporary Botswana. Inclusive political and economic institutions, influenced by critical junctures in history, produce virtuous cycles that reinforce pluralism in the market and in politics. Acemoglu will contrast that pattern of development with that experienced under extractive institutions. He will also describe the conditions under which institutions favorable or inimical to development tend to arise. Karla Hoff will provide critical comments.