An independent Scotland should use the pound without permission from rUK, says new ASI report

Today the Adam Smith Institute has released a new paper: “Quids In: How sterlingization and free banking could help Scotland flourish”, written by Research Director of the Adam Smith Institute, Sam Bowman. Below is a condensed version of the press release; a full version of the press release can be found here. An independent Scotland […]

Should central banks do emergency lending?

A barnstorming new paper from the Richmond Fed, written by its President Jeffrey Lacker and staff economist Renee Haltom, argues that the Federal Reserve has drifted into doing too much credit policy to the detriment of its traditional goal of overall macroeconomic stabilisation. In its 100-year history, many of the Federal Reserve’s actions in the nameof financial […]

Video: Adam Smith Lecture 2014 by Scott Sumner

Scott Sumner’s Adam Smith Lecture, delivered last week, is now online. For my money it’s the best outline of his view of the Great Recession and the correct role of monetary policy that I have yet seen. Scott’s presentation can be downloaded here, and Scott wrote about his trip for TheMoneyIllusion here.

Kick the ‘wise men’ out of the Bank of England

In today’s City AM, newly-minted ASI fellow Lars Christensen (aka The Market Monetarist) writes on the ‘Carney rule’. The Carney announcement is a tiny step in the right direction, he says, but as long as the ‘wise men’ of the Monetary Policy Committee are running monetary policy, policy will be erratic and unpredictable, preventing adequate planning […]

A question for market monetarists

Market monetarism, as propagated most prominently by Scott Sumner’s (excellent) blog The Money Illusion, argues that recessions come about due to a collapse in demand. This is a problem because prices cannot adjust downwards quickly. Instead of a costly adjustment period we can simply boost demand by announcing a target and credibly committing to do […]