From our perspective, "neutral" Fed policy going forward is a Funds Rate that hovers around 2% (perhaps in a range of 1.5% to 2.5%) alongside healthy liquidity provisioning. It's fair to ask, if 1.5% ...

Recent news has been dominated by the trade war with China and uncertainty about the future path of Federal Reserve policy. These events are related, but not in the way you might assume. With ...

We show, in a monetary exchange economy, that asset prices in a complete markets general equilibrium are a function of the supply of liquidity by the Central Bank, through its effect on default and ...

Many economists take for granted that the Federal Reserve has contributed positively to economic stabilization in the U.S., but its track record warrants a critical appraisal. Since the creation of ...

How can mortgages be redesigned to reduce housing market volatility, consumption volatility, and default? How does mortgage design interact with monetary policy? We answer these questions using a ...

THE international gold standard worked reasonably well before the World War -- so well, indeed, that with hardly a dissenting voice it was reëstablished at the earliest possible moment after peace had ...

This week on the podcast, I had a great time talking about the monetary disequilibrium view of business cycles with Steve Horwitz. This perspective sees the deviation between desired and actual money ...

Although it is generally recognized that the equilibrium real interest rate (ERR) varies over time, most recent work on policy analysis has been carried out under the assumption that this rate is ...

THE recent volatility in the stockmarket has come as a shock in part because equities have been performing well for an extended period. Share prices have been on a broadly upward trend ever since the ...