Monetary Policy
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Congress Should Not Expect a Miracle from Monetary Stimulus
Congress should not treat stimulus like a miracle drug that will mend the pandemic or believe the Fed can simply monetize Treasury debt without longer‐run consequences.
Modern Monetary Theory Meets Greece and Chicago
During the fall of 2009, George Papandreou headed the ticket of the Panhellenic Socialist Movement, known by its acronym PASOK, against the then‐governing conservative party, New Democracy, in the Greek national elections.
Monetary Conference Examines Digital Currencies
The promise and peril of new technology
How COVID-19 Changed the Federal Reserve
The Federal Reserve’s expansion into credit allocation during the COVID-19 pandemic will be difficult to roll back. Jim Dorn comments.
Envisioning Monetary Freedom
The much‐enlarged role of government in modern monetary systems makes it especially difficult to “inquire what would result” were the government to cease playing any role.
The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy
Featured Book Forum
Engine of Inequality: The Fed and the Future of Wealth in America
Book Forum | March 4, 2021
Following the 2008 financial crisis, the Federal Reserve’s monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. George Selgin, director of the Cato Institute’s Center for Monetary and Financial Alternatives, interviewed Karen Petrou on her new book, Engine of Inequality: The Fed and the Future of Wealth in America, and the pragmatic solutions inside for creating more inclusive monetary policy and equality‐enhancing financial regulation as quickly and painlessly as possible.
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Featured Studies
Maintaining Distance between Monetary and Fiscal Policy
Adopting a rules‐based approach to the conduct of monetary policy would help safeguard central bank independence and promote both monetary and financial stability.
By James A. Dorn
Ground Proposals for “Helicopter Money”
“Helicopter money” is a fascinating theoretical construct that has proven useful in advancing economists’ understanding of various subtle points of monetary theory. But it risks undermining both Congress’s power of the purse and the Federal Reserve System’s already tenuous independence.
By George Selgin