Tag Archives: Federal Reserve

Paul Volcker, RIP

Paul Volcker was a man of strong convictions, including a commitment to sound money https://wcoats.blog/2017/10/14/sound-money/.  It surprises me that in 1971 he urged President Nixon to end the United States’ commitment to maintaining the price of gold to which most … Continue reading

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Returning to Currencies with Hard Anchors

Why did the gold standard ultimately fail? What system would overcome those weaknesses? See my: Adam Smith Institute Blog 

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Modern Monetary Theory—A Critique

So called Modern Monetary Theory (MMT) has become popular with Green New Dealers because it claims to remove or at least loosen traditional constraints on government spending.  MMT offers unconventional ideas about the origins of money, how money is created … Continue reading

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Their Turkey and Ours

“Recep Tayyip Erdogan believes high interest rates are the cause of inflation, not the remedy for it”  The Economist May 19, 2018 “How-turkey-fell-from-investment-darling-to-junk-rated-emerging-market” During the 1990s the inflation rate in Turkey averaged around 80% per annum varying between 60% and 105%.  … Continue reading

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A proposal for the Fed’s balance sheet

By Warren Coats[1] To save financial institutions from the collapse that threatened them after the bankruptcy of Lehman Brothers in September 2008, the Federal Reserve purchased government securities and Mortgage Backed Securities (MBS) sufficient to increase the size of its … Continue reading

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SALT—More press nonsense on tax reform

The elimination of State and Local Tax (SALT) deductions from the proposed tax reforms working their way through Congress has become a hot topic. Fine, but please keep the discussion honest. Sadly my local newspaper, The Washington Post, is not … Continue reading

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Discussion of John Tamny’s: Who Needs the Fed?

John concludes that we do not need the Fed because the Fed has become irrelevant. He argues that the interest rate “set” by the Fed is not relevant for the rest of the economy and that the Fed’s influence on … Continue reading

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