How the US Got its Inflation

Here we present the graph showing the amount of US money that actually entered circulation since 2003. Gathering the data from the Federal Reserve Bank of St. Louis economic data base called FRED, the graph shows in the dashed black line this amount of money that entered circulation. It equals the amount of money thatContinue reading “How the US Got its Inflation”

The Spectre of Price Inflation

Inflation was said to be a temporary blip during Covid. In this new book by Agenda Publishing, and Columbia University Press in the US, I go through the history of money and banking policy, how inflation episodes have occurred and why this inflation increase of 2021-2022 is likely to be more of an episode asContinue reading “The Spectre of Price Inflation”

Turkish Economic Summit: September 29

Professor Max Gillman invited to speak at Turkish summit on “Economic Transformation and New Paradigms” Max Gillman, the Friedrich A. Hayek Professor in Economic History at the University of Missouri–St. Louis, joined a select group of economists from around the world at Turkey’s first Economic Transformation Summit, held Sept. 29 in the capital city ofContinue reading “Turkish Economic Summit: September 29”

International Deposit Insurance with Risk-Based Premia

Friedrich A. Hayek’s 1944 acclaimed Road to Serfdom (reproduced by the Institute for Economic Affairs online) supports social insurance for when markets work imperfectly, a long tradition in neoclassical economics now reflected in practice by the implicit or explicit social insurance linked to nearly all fiscal policy: “Nor is there any reason why the stateContinue reading “International Deposit Insurance with Risk-Based Premia”

WSJ: Time for Positive Interest Rates for Savers

Time for Positive Interest Rates for Savers Federal Reserve interest rates of 2% to 2.25% aren’t neutral if the inflation rate is 2.61%. 8 Comments Nov. 1, 2018 1:10 p.m. ET Federal Reserve Chairman Jerome Powell speaks in Washington, June 13. Photo: michael reynolds/EPA/Shutterstock In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed,Continue reading “WSJ: Time for Positive Interest Rates for Savers”

US Law on the Target Inflation Rate

Extract from new forthcoming Berkeley E Journal of Macroeconomics: Advances, “The Welfare Cost of Inflation with Banking Time”, Max Gillman, 2018. Below is Section 2 of this article: “US Law on the Target Inflation Rate” According to the US Federal Reserve Bank the FOMC (Federal Open Market Committee) has since 2012 adopted an explicit inflationContinue reading “US Law on the Target Inflation Rate”

WSJ:”Fed Should Slowly Unwind Excess Reserves”

The Wall Street Journal: Letter “Fed Should Slowly Unwind Excess Reserves” Before 2008, competition between banks forced them to loan out or otherwise invest excess reserves. 4 Comments Sept. 26, 2018 3:15 p.m. ET SEC chairman, Jay Clayton in April Photo: Yuri Gripas/Bloomberg News Regarding your editorial “Sharing the Wealth of Markets” (Sept. 21): Yes,Continue reading “WSJ:”Fed Should Slowly Unwind Excess Reserves””

Comment on “Cold Turkey and Moral Hazard”

Thomas Gordon : Writing in Wall Street Journal: December 14, 2017 @Max Gillman Good comments and informatory about why banks are now paid interest  on reserves.   As it concerns the article, I don’t think they were paying a huge interest rate (I thought it was less than 1%, but probably more than most banks wereContinue reading “Comment on “Cold Turkey and Moral Hazard””

Turning a Good Blueprint for Tax Reform into a Great One

By MAX GILLMAN and DAVID C. ROSE April 2017 Two weeks ago President Trump told House leaders that he liked most of the House Ways and Means Committee’s “Blueprint” for tax reform. The blueprint does indeed significantly improve tax policy in a number of ways. But a careful consideration of what the latest economic theoryContinue reading “Turning a Good Blueprint for Tax Reform into a Great One”

Is the House blueprint for tax reform good for St. Louis?

St. Louis Post-Dispatch St. Louis Post-Dispatch Column Is the House blueprint for tax reform good for St. Louis? By Max Gillman and David C. Rose Mar 8, 2017 President Donald Trump recently stated that he will release an outline for comprehensive tax reform in the coming weeks, and if his previous statements are accurate,Continue reading “Is the House blueprint for tax reform good for St. Louis?”