Reforming the US Banking Insurance System and its Conflation with Monetary Policy

Reforming the US Banking Insurance System and its Conflation with Monetary Policy. The main problem with Federal Reserve monetary and “macroprudential” policies (the latter means government bank sector insurance policy) is that after 2008 the two became conflated so as to distort both sets of policies. Before 2008, it was believed that the non-FDIC financialContinue reading “Reforming the US Banking Insurance System and its Conflation with Monetary Policy”

Reforming Monetary and Banking Insurance Policy: Excerpt from Last Chapter, The Spectre of Price Inflation

The FDIC could offer a specifically determined risk-based premium, according to the FDIC’s own assessment of risk, for different types of deposits across the financial intermediation spectrum, including pensions, insurance companies, investment banks and the host of new innovative financial institutions that are arising. This would simply allow any financial institution to apply for FDICContinue reading “Reforming Monetary and Banking Insurance Policy: Excerpt from Last Chapter, The Spectre of Price Inflation”

The Spectre of Price Inflation

Bank runs even with over $3 trillion in reserves held by private banks at the Fed. What are those reserves doing other than leading to less investment? Certainly they are not preventing bank runs as we see today. Inflation was said to be a temporary blip during Covid. In this new book by Agenda Publishing,Continue reading “The Spectre of Price Inflation”

The Trojan Horse in the Gates of US Monetary Policy

The Federal Reserve is embarked upon increasing the interest rate that they set on reserves held at the Fed. This is the interest rate that the Fed determines by diktat, coming after interest was allowed to be paid on reserves for the first time in 2008. This is being done to combat inflation. Consider howContinue reading “The Trojan Horse in the Gates of US Monetary Policy”

The Federal Reserve is Breaking US Federal Law

The Fed is breaking US federal law in two direct ways, skirting federal law in one important way, and disregarding the intent of Congress in a third crucial way. All of this shapes post-2008 monetary policy and distorts capital markets. First, the Balanced Growth and Full Employment Act of 1978 fully amends the Employment ActContinue reading “The Federal Reserve is Breaking US Federal Law”

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”

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”