Austrian "Inflation," Austrian "Money," and Federal Reserve Policy
, by Richard Timberlake
, The Freeman
, Sep 2000
Response to Joseph T. Salerno's October 1999 article which critiqued Timberlake's essays in the April, May and June 1999 issues; discusses the words "inflation" and "money" and Federal Reserve policies, in an Austrian economics context
"The Federal Reserve System came into existence on the presumption that it would make the clearinghouse issues official and legitimate. The 1929-1933 episode of bank fragmentation and destruction, however, emphasized the difference between privately operated clearinghouses and a regulatory government agency ... The governmental clearinghouse system, the Federal Reserve System, failed because the decision-makers in the Fed faced no bottom line."
Delete the Fed
, by Sheldon Richman
, 20 Aug 2013
Asks who should run the Federal Reserve after Bernanke's term expires and argues the Fed is unnecessary to stabilize the economy or to prevent unemployment
"... government policy and Fed manipulations can create the very recessions that the Fed then tries to reverse. If the politicians and their court economists would get over their hubristic belief that they are stewards of the economy, macroeconomic crises would disappear. Besides, the Fed cannot set interest rates, not even its narrow federal-funds rate for overnight interbank loans. At most, it targets that rate by buying and selling government securities, but it doesn't always hit its target. The idea that the Fed can even heavily influence mortgage and other interest rates ignores important facts."
Economic Fascism and the Bailout Economy
, by Gary North, 7 Feb 2009
Discusses the fascist roots of the U.S. political system and events since September 2008 to extend government control of private institutions
"At the very core of the free-market economy, as Mises said in 1912, is the monetary system. That system is now completely and openly run by a cartel that is now trapped by the Federal government. The Federal Reserve System is soon going to have to bail out the Federal government. The Federal government is bailing out the commercial banks, and if the Federal government cannot bail out the banks, the Federal Reserve has got to do it directly."
How Much Do You Know About Liberty? (a quiz)
, The Freeman
, Jun 1996
A 20-question quiz (with answers) on various topics related to liberty in the history of the United States
"Which powerful U.S. government agency was established to assure monetary stability—but became a major factor responsible for the Great Depression? ... The Federal Reserve System was a key culprit responsible for the Great Depression. The Fed is subject to political influence. ... Because the Fed has considerable impact over the money supply, its errors can have a traumatic impact on the economy, as they did during the 1930s."
Related Topics: United States Bill of Rights
, Compulsory Education
, Free Trade
, John Hancock
, Warren G. Harding
, Abraham Lincoln
, Right to Trial by Jury
Interview with Gary Becker
, by Gary Becker
, The Region
, Jun 2002
Topics include the economics of crime, economics and law, banking discrimination, economic education, social security, behavioral economics, sociology, career choices and moral hazards
"Of course, the Fed has to worry about contagions and runs on banks. But I do not believe the best way to reduce contagions is to bail out banks that fail. ... The Fed should also make sure that banks can survive temporary liquidity problems by borrowing from the Fed and by selling assets. If the Fed does that, the too-big-to-fail argument is weak. ... I can understand why the Fed was concerned about the consequences of a collapse of LTCM, but it does not seem to me that this merited the Fed getting involved. ... I do not like the Fed's involvement—even if innocuous—because there is too much room for politics."
Interview with James Buchanan
, by James M. Buchanan
, The Region
, Sep 1995
Topics include The Calculus of Consent
, public choice theory, monetary policy and the Federal Reserve
"Region: If you were advising the Federal Reserve, what would you say are the unsolved economic problems of the day?
Buchanan: It's not the Federal Reserve's role to be solving the economic problems of the day. I think the Federal Reserve has enough to do, and it should target itself much more carefully toward keeping the value of the monetary means stable and quit doing other things."
Money and Banking
, by Lawrence H. White, The Encyclopedia of Libertarianism
, 15 Aug 2008
Discusses some of the issues regarding money, whether state- or privately issued, and banking, including central banks, such as the Federal Reserve, fractional reserve banking and free (fully unregulated) banking
"Later, recognizing that central bank officials have no incentive to follow such a rule, [Milton Friedman] suggested effectively abolishing the Fed by freezing the stock of Fed liabilities and sending the monetary policymakers home. Friedman's diagnosis of the Federal Reserve System's contribution to the Great Depression differed from that of the Austrian economists Mises and Hayek. The Austrians regarded the Fed's overly expansive policy in the mid- to late 1920s as fostering an unsustainable investment boom and thereby sowing the seeds of the 1929 downturn."
One Hundred Years of the Federal Reserve
, by Sheldon Richman
, Future of Freedom
, Dec 2013
Examines the Fed's record since its inception, quoting the 2010 Cato paper "Has the Fed Been a Failure?" as well as Rothbard, Timberlake and Hummel
"It's a sobering thought that in the 100 years since the Fed's creation, the dollar has lost 95 percent of its value. Had the Fed never been created, America would be dotted with Nickel Stores (other things being equal) instead of Dollar Stores. ... Central banks like the Fed only messed money up, robbing the people of their purchasing power while facilitating warfare and welfare spending through irresponsible large-scale government borrowing."
Ron Paul: A Most Unusual Politician
, by Murray Rothbard
Preface to Ron Paul's Gold, Peace, and Prosperity: The Birth of a New Currency
"Our present system gives to the federal government and its Federal Reserve the unlimited power to counterfeit. The problem is that if the Fed has the power to counterfeit, it will inevitably use that power. Why? Because the power to counterfeit is too tempting. The power to create money means that it is far more tempting to print it than to work for it. It means that the counterfeiter can pay his debts, spend more money, give more money to his friends and associates."
Synchronized Boom, Synchronized Bust: Bad U.S. monetary policy had global consequences
, by Marc Faber, The Wall Street Journal
, 18 Feb 2009
Examines how the latest boom/bust cycle came into being and allegations that it was a "free market" failure
"Following the March 2000 Nasdaq bust, the Federal Reserve began to slash the fed-funds rate from 6.5% in January 2001 to 1.75% by year-end and then to 1% in 2003. (This despite the fact that officially the U.S. economy had begun to recover in November 2001). Almost three years into the economic expansion, the Fed began to increase the fed-funds rate in baby steps beginning June 2004 from 1% to 5.25% in August 2006."
The Banker's Bank
, by Sheldon Richman
, 8 May 2009
Reviews the pre-history of the Federal Reserve and its origins in the Progressive Era
"There has hardly ever been anything we could call genuine free banking in America, even when a gold standard was in effect. States and the national government regulated the banks ... So, concerned about 'inelasticity' and the rivalry of state and private banks and private trust companies, the national banks (Wall Street), led by J. P Morgan, turned their attention at the end of the nineteenth century to the establishment of a central bank."
A Monetary History of the United States, 1867-1960
by Milton Friedman
Partial contents: The Greenback Period - Silver Politics and the Secular Decline in Prices, 1879-97 - Gold Inflation and Banking Reform, 1897-1914 - Early Years of the Federal Reserve System, 1914-21 - The High Tide of the Reserve System, 1921-29
Follow the Money (A Rap Attack on Petrodollar Wars and The FED)
, by Dave Berzack, 17 Dec 2013
Questions the rationales given for the Iraq and Libyan invasions and argues that the Federal Reserve and petrodollar agreements are the real reasons
How To Be a Crook
, by Larken Rose, 7 Apr 2012
A progression of seven methods to rob from your fellow human beings
Is Anyone Minding the Store at the Federal Reserve?
, by Alan Grayson, 6 May 2009
U.S. Representative Alan Grayson (D-FL) asks Elizabeth Coleman, Inspector General of the Federal Reserve, about the $9 trillion credit extension by the Fed, reported by Bloomberg
Money, Banking and the Federal Reserve
, by Mises Institute
, Ron Paul
, Lew Rockwell
, Murray Rothbard
, Joseph Salerno
Explains the origins of money and banking, how and why the Federal Reserve was created and the effects it has had on society. Dedicated to Murray Rothbard.