Sound Banking

Wednesday, April 18th, 2018

If the language of commerce is quid pro quo, money is its grammar.

Tuesday, January 30th, 2018

A new NBER paper shows that credit-induced banking panics are the exception, not the rule.

Thursday, December 14th, 2017

The Fed's balance sheet crowds out bank lending, stifling economic growth.

Tuesday, April 25th, 2017

Many economists have argued that government mortgage programs and low interest rates policies caused the 2008 financial crisis. We maintain that government deposits insurance, provided in the United States by the Federal Deposit Insurance Corporation (or FDIC), may have also been a contributing factor. By failing to price risk fairly, the FDIC encourages banks to increase their risk-taking activities.

Friday, April 14th, 2017

The level and growth of a nation’s private debt, more than public debt, predicts the worst recessions.

Tuesday, April 11th, 2017

The Bipartisan Budget Act of 2015 suspended the debt ceiling through mid-March of this year. On March 16, the debt ceiling was raised to the current level. When the debt ceiling is reached, the Treasury will not be able to issue more debt to borrow new funds from the public. Instead, the Treasury must take extraordinary measures to raise cash. Extraordinary measures are policies that temporarily lower the national debt by reducing the Treasury securities held by government agencies—known as intragovernmental debt.

Thursday, March 30th, 2017

Ongoing federal budget deficits have required the U.S. Treasury to issue substantial amounts of debt to finance government spending. The Treasury has been able to easily issue debt since the federal government enjoys the highest credit rating, which lowers the interest rate that creditors demand. Historically low interest rates in general have further helped limit interest expense.

Wednesday, February 26th, 2014
by Allan H. Meltzer, Carnegie Mellon University and Hoover Institution
Thursday, May 23rd, 2013
Tuesday, January 29th, 2013
by Adrian Ash AMID the brouhaha over Germany's gold reserves at the Bundesbank, there's another central bank using gold actively to bolster its currency and financial stability.
Monday, January 21st, 2013

The depredations of the Fed.

by Judy Shelton
Thursday, January 10th, 2013

by Devin Roundtree

Wednesday, December 26th, 2012
by Frank Shostak On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion of mortgage debt a month.