Money Growth Does Not Cause Inflation!
It is conventional wisdom that printing more money causes inflation. The only problem is, it’s not true. That’s not how inflation works.
Money Growth Does Not Cause Inflation! Read More »
It is conventional wisdom that printing more money causes inflation. The only problem is, it’s not true. That’s not how inflation works.
Money Growth Does Not Cause Inflation! Read More »
Introduction The purpose of this chapter is to present a framework for the analysis of the price level and inflation. MMT (Modern Monetary Theory) is currently the only school of economic thought that, in direct contrast to other schools of thought, specifically identifies and models both the source of the price level and the dynamics
A Framework for the Analysis of the Price Level and Inflation Read More »
It may surprise you to know that the banking sector is one of the most regulated industries in the United States.
Money and Banking (Part 9 – Banking regulation) Read More »
The US financial system is extremely complicated and this series sheds light only on some corners of that system by focusing on the banking sector.
Money and Banking (Part 8 – The Private Banking Business) Read More »
Given that the concept of leverage will be used often in the upcoming posts, this post spends some time explaining what leverage is and some of its impacts on the balance sheet of any economic unit.
Money and Banking (Part 7 – Leverage) Read More »
This post studies how the Fed is involved in fiscal operations and how the U.S. Treasury is involved in monetary-policy operations.
Money and Banking (Part 6 – Treasury and Central Bank Interactions) Read More »
This post answers some FAQs about monetary policy and central banking.
Money and Banking (Part 5 – FAQs about central banking) Read More »
While details in operating procedures have changed through time, the federal funds rate has progressively gained in importance as a relevant operating tool since the 1920s.
Money and Banking (Part 4 – Monetary Policy Implementation) Read More »
Now that we have an understanding of how the balance sheet of the Fed works, it is possible to go into the details of how the Fed operates in the economy in terms of monetary policy.
Money and Banking (Part 3 – Monetary Base, Reserves, and Central Bank’s Balance Sheet) Read More »