Free Banking is now Alt-M

The Free Banking blog was a venue for leading free banking advocates to share their insights with the world. This illustrious cast includes academics, public policy experts, government officials, and rabble rousers. Guest bloggers will feature financial gurus, entrepreneurs, historians, celebrities, and many other different perspectives.

Alt-M is a blog devoted to exploring and promoting ideas for an alternative monetary future. Our goal is to reveal the shortcomings of today’s centralized, bureaucratic, and discretionary monetary arrangements, and to bring serious consideration of real alternatives to the center stage of current monetary and financial reform debates.

Alt-M.org is a joint project of the Cato Institute’s Center for Monetary and Financial Alternatives and the Liberty and Privacy Network’s Center for Financial Privacy and Human Rights.

Free Banking is now Alt-M

In his recent post exploring the welfare implications of the Fed paying interest on reserves, George Selgin observed that if banks failed to maintain optimal reserves, the problem was either incorrect remuneration of reserves themselves, or the Fed’s mispricing of short-term (intraday or overnight) credit. Regarding the latter,…

The post The Fed’s Mispricing of Liquidity: Nothing New Under the Sun appeared first on Alt-M.

President Trump’s nomination of Jerome Powell as the next chairman of the Federal Reserve System is a bet that he will continue Janet Yellen’s policies and not rock financial markets. The expectation is that Powell will follow the Fed’s already-announced normalization schedule, which calls for slowly reducing…

The post Powell’s Challenge: Unwinding the Fed’s Unconventional Monetary Policy appeared first on Alt-M.

The president just announced his pick to chair the Federal Reserve  System. Subject to Senate confirmation, current Fed governor Jerome “Jay” Powell will succeed Janet Yellen as Fed chair in February 2018. Market reaction to this announcement has been sanguine, with commentators describing Powell as the “continuity candidate.”…

The post Trump Taps Jerome Powell to Chair Fed appeared first on Alt-M.

This primer is supposed to introduce readers to the workings of the present U.S. monetary system. So it’s only natural that it should take established monetary arrangements for granted, including an official, “fiat” dollar currency managed by the Federal Reserve System. And while I haven’t hesitated to…

The post A Monetary Policy Primer, Part 12: Monetary Alternatives appeared first on Alt-M.

The Bitcoin system has the great virtue of securely sending value directly from stranger to stranger. It is open to anyone, anywhere in the world. The sender does not need to trust the recipient, nor any bank or other institution, to accurately record the transfer. The Bitcoin…

The post Blockchain + Gold appeared first on Alt-M.

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease…

The post Can the Government Destroy Bitcoin? appeared first on Alt-M.

Dormant for a while, the debate over India’s demonetization program of last fall has been revived by new evidence. The new evidence on note returns and GDP vindicates the critics, and has the defenders in strategic retreat. To recap: On November 8, 2016, India’s Prime Minister Narendra…

The post India’s Failed Demonetization Program and Its Retreating Economic Defenders appeared first on Alt-M.

The “big news” from Janet Yellen’s recent press conference, which was hardly news at all to those who have followed the Fed’s past announcements, was that Fed officials, having long promised to eventually undo much if not all of the vast balance sheet growth brought about by…

The post Operation SNAIL appeared first on Alt-M.

According to a new national poll just released by the Cato Institute, Americans know very little about the Federal Reserve. Not surprising. But among those who are familiar with its work, most think it should not be setting interest rates. The poll, conducted in collaboration with YouGov,…

The post Only 1 in 4 Americans Say Fed Should Set Interest Rates appeared first on Alt-M.