Free Banking is now 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.

Prior to 2008, the Fed could accelerate or decelerate inflation by expanding or contracting the monetary base and therefore bank reserves with open market operations and/or with repo loans to dealers. Since 2008, however, the Fed has paid interest on excess reserves equal to or even higher…

The post The Rudderless Fed appeared first on Alt-M.

As our more regular readers know well, every now and then I like to take another stab at debunking the  myth that fractional reserve banking has fraudulent roots. Besides occurring in numerous textbooks, that myth is routinely expounded in the writings and lectures of certain contemporary Austrian School…

The post The “Bagging Rule” – Or Why We Shouldn’t Arrest (All) the Bankers appeared first on Alt-M.

Since its publication in 1963, Milton Friedman and Anna Jacobson Schwartz’s A Monetary History of the United States has stood as a monumental scholarly accomplishment. Even critics of Friedman’s Monetarism have admired the work’s meticulous historical research, particularly its reconstruction of a data series on several measures of…

The post Did Friedman and Schwartz Fudge Their Data? Not So Fast… appeared first on Alt-M.

I fully expected Larry White’s recent post challenging the state theory of money, and particularly that theory’s understanding of the origins of metallic coinage, to generate some critical feedback. In particular, I expected it to raise the hackles of “Lord Keynes” (henceforth LK), the otherwise anonymous author…

The post “Lord Keynes” Contra White on the Beginnings of Coinage appeared first on Alt-M.

I’ve begun working on a new book on the gold standard. In the first chapter I plan to discuss the origin of money, as a preliminary to discussing how silver and gold became the world’s dominant commodity monies. The topic of the origin of money has become…

The post Why the “State Theory of Money” Doesn’t Explain the Coinage of Precious Metals appeared first on Alt-M.

“… equally efficacious, and equally a hoax.” – Benjamin Disraeli, 1848[1] One of the highlights of the U.S. summer for Fed watchers is the annual ritual in which the Fed’s economic soothsayers peer into their crystal balls, a.k.a. their stress tests, to reassure us that the U.S. banking system…

The post The 2017 Stress Tests: Are US Banks Really in Good Shape? appeared first on Alt-M.