ACC Archives

Month: March 2012
Rescuing Monetary Policy

The article below is by John Taylor of Stanford University, a very respected monetary economist who is likely to be the next Fed chairman if a Republican is president when Bernanke’s term ends. It suggests replacing the present Fed policy,...

What Does It Mean to be Free?

(This was orginally written as a column for the Star-Exponent.) What does it mean to be free? I believe that freedom is the ability to do certain things. To speak as I wish. To think as I wish. To do...

Shadow Bank Runs

In the article below economist Tyler Cowen points out that we have done nothing whatever to address one of the biggest problems that hit the financial system in 2008: the shadow bank run and threat of more such runs. For...

Stealth Bailout for the Big Banks, Write Downs

In yesterday’s New York Times Gretchen Morgenson examines the plight of Ed DeMarco who is the acting director of the Federal Housing Finance Committee. He has suffered the slings and arrows of many in Washington because he hasn’t forced Fannie...

What is the Best Way to Set Interest Rates?

The article below describes the debate among central bankers about the best way to set interest rates. Here’s a radical idea: let the market set them. Let the market set them based on the same supply and demand that is...

What Bernanke gets wrong about the gold standard

Keynesians loathe gold. They loathe it because it ties their hands. They want to be Masters of the Universe. The universe however has other plans as it has shown time after time after time. Ever notice that the econometricians NEVER...