Category Archives: Monetary Theory


David Beckworth gives some reason to believe that Hayek would have supported QE2. And Scott Summers make the case for believing Hayek would have supported monetary easing in Europe.

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“The Hayek Rule: A New Monetary Policy Framework for the 21st Century”, (pdf) by Marius Gustavson and Anthony Randazzo Nov. 9, 2010.  Quotable: “We propose a new policy framework for monetary policy, one that looks at monetary aggregates and factors … Continue reading

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Blogosphere debate over NGDP targeting makes its way to the boardroom of the Federal Reserve

David Beckworth reports: The FOMC minutes released today reveal a big change in terms of policy options being discussed by the Fed.  For the first time the FOMC has discussed the possibility of targeting the level of NGDP.  Here is … Continue reading

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Hayek — against a Fed created post-bust deflation

“The moment there is any sign that the total income stream may actually shrink [during a post-bust deflationary crash], I should certainly not only try everything in my power to prevent it from dwindling, but I should announce beforehand that … Continue reading

Posted in Monetary Theory, Money & the Trade Cycle | 4 Comments

Just Don’t Call Him an “Austrian”

George Selgin on how he became an economics and other matters.  Quotable: After college I first tried to combine my main interests by working toward a degree in marine resource economics at the University of Rhode Island. The program turned … Continue reading

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Sumner on Selgin on Inflation, Deflation and Productivity

George Selgin is one of the best of the current generation of monetary economists.  Scott Sumner is perhaps the most engaging economist blogger on the internet.  What happens when Sumner blogs on Selgin?  Take a look.  Selgin responds in the … Continue reading

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