An empirical – not a theoretical – disagreement with George, Larry and Eli

Last week George Selgin warned us (the Market Monetarists) about getting to excited about the recent actions of the Federal Reserve. Now fellow Free Banker Larry White raises a similar critique in a post on freebanking.org. Here is Larry: “While saluting Sumner 2009…I favor an alternative view of 2012: the weak recovery today has more […]

Alex Salter’s (friendly) critique of Market Monetarism

Alex Salter just sent me his latest working paper “Not All NGDP is Created Equal: A Critique of Market Monetarism”. I haven’t read the entire paper yet,  but Alex is always writing interesting stuff – including as a guest blogger at this blog – so I want to share it with my readers already. Here […]

Bryan Caplan is right – free market economists should worry deeply about unemployment

Bryan Caplan has a very good blog post over at Econlog on “The Grave Evil of Unemployment” and on why free market economists should be deeply concerned about unemployment. I strongly agree with Bryan on this topic (and most other topics) – free market economists are often far too nonchalant about unemployment. This is Bryan: I know […]

Guest post: Bitcoin, Money and Free Banking (by Lasse Birk Olesen)

Lee Kelly in a recent guest post here on The Market Monetarist discussed the implication of excess demand for money for the development of barter and Free Banking. I found Lee’s discussion extremely interesting and think that it could be interesting to see how monetary disequilibrium actually could work as a catalyst for the development […]

I just ordered “Fragile by Design”

I must admit that I am a bit of a “serial shopper” when it comes to buying books on Amazon. Today I (pre) ordered a book I have been waiting for some time –  “Fragile by Design: Banking Crises, Scarce Credit,and Political Bargains”  by Charles Calomiris and  Stephen Haber. I have written about the book before: For […]

Guest post: Nick Rowe, Barter, and Free Banking (By Lee Kelly)

I have for some time wanted the young and talented Lee Kelly to write a guest post for The Market Monetarist. I am happy that he now has done so. Anybody who follows the market monetarist blogs will be familiar with Lee’s name and his always insightful comments. So thank you Lee and I hope you […]

Kazakhstan’s wise devaluation

I am in Stockholm today, but it is not the Swedish economy which is on my mind – rather it is Kazakhstan. On Tuesday the Kazakhstani central bank devalued the Kazakh tenge by 19%. This is what I have said about the issue another place:  The latest ‘news flash’ in the still-ongoing emerging market turmoil […]

The monetary transmission mechanism in a ‘perfect world’

I fundamentally think that what really sets Market Monetarism aside from other macroeconomic schools it how we see the monetary transmission mechanism. I this blog post I will try to describe how I think the monetary transmission mechanism would look like in a ‘perfect world’ and how in such a perfect world the central bank […]

The un-anchoring of inflation expectations – 1970s style monetary policy, but now with deflation

In country after country it is now becoming clear that we are heading for outright deflation. This is particularly the case in Europe – both inside and outside the euro area – where most central banks are failing to keep inflation close to their own announced inflation targets. What we are basically seeing is an […]

Central bank rituals and legitimacy

One of the most interesting aspects of US monetary policy since 2008 is that while Ben Bernanke certainly is not ignorant of economic history or monetary theory it seems like the Fed under his leadership has not responded nearly as aggressive to the crisis as one should have expected if one from reading Bernanke’s academic […]