Can Money be Neutral?

Central banks pursue a policy of money neutrality. Except when they are seeking a monetary policy to steer the economy. Money neutrality means money has no impact on the workings of supply and demand in the real sector. That is, money is just a veil or a cloak. Money’s influence and function are to serve […]

Free Banking as an Alternative to the Federal Reserve

Free banking compared to Central Banking Free banking is money that is issued by free-market private banks with minimal regulation and clear market rules in a competitive environment. Free banking has worked throughout history, yet for ideologically derived and fiscal expansion reasons it is jettisoned for government-controlled money. The idea is a few intellectuals know […]

David Ricardo On the Principles of Political Economy and Taxation in PDF

On the Principles of Political Economy and Taxation by David Ricardo was written in 1817. The Economic themes in this book were value and free trade. The book also addresses many subsidiary issues. You can download it here: On the Principles of Political Economy and Taxation by David Ricardo in PDF I recommend you download […]

Michael Woodford – Financial Intermediation and Macroeconomic Analysis – Review

Michael Woodford’s 2010 paper “Financial Intermediation and Macroeconomic Analysis”, improves his theory that was articulated in this book, Interest and Prices (2003). He based this on the data and experiences from the 2008 financial crisis and changing ideas in monetary economics since his 2003 work. I have academic respect for Michael Woodford, this review is […]

Natural Rate of Interest – Wicksell – Loan Capital Equal

Demand and Supply of Loan Capital Equal Wicksell’s second definition of the natural rate of interest is the rate at which the demand for loan capital and the supply of loan capital is equal. Wicksell writes “The rate of interest at which the demand for loan capital and the supply of savings exactly agree, and […]