Monetary Theory / David Howden

The reader should trudge his way through this book for two reasons. First is the explanation for why the purchasing power of money must be defined in terms of consumers’ goods prices, not capital goods. Second, and more importantly, Braun resurrects the subsistence fund doctrine, an integral aspect...

If the economy improves, the banking sector will increasingly loan out its reserves and bring inflationary pressure to prices. If the economy does not improve, the Fed will not be able to unload the low-quality assets on its balance sheet, and thus the inflationary pressures will remain. The so-...

To hear some commentators talk, one would think that America's trade-deficit woes would be miraculously erased with a swift devaluation.

While holding any real asset serves no direct use for a central bank, it does act as an insurance policy of sorts.