Henry Paulson, Foreign Affairs
Coronavirus, Judy Shelton, and the Federal ReserveA Major Newspaper Wants To Quarantine the Nominee’s Ideas
Editorial of The New York Sun | March 4, 2020
The Classical Gold Standard Can Inform Monetary Policy
quoting Michael D. Bordo, Milton Friedman via CATO
Watching the frenzy surrounding Judy Shelton's confirmation hearing before the Senate Banking Committee on February 13, one is led to believe that the gold standard is a "nutty" idea, for which no serious economist or monetary policymaker could possibly have a kind word.
Joseph Sternberg, author, The Theft of a Decade: How the Baby Boomers Stole the Millennials' Economic Future; and WSJ editorial board; in re: Judy Shelton’s nomination to the Federal Reserve Board in the Senate is under abeyance. Where’s productivity? Why does Judy Shelton think that even if we work as hard as we can, we can’t match the productivity of our parents’s (or grandparents’s) generation: because we need to return to some form of the gold standard, which would put the Fed out of business is several matters. This is because of the Fed, which has been unable to keep up. Price signals are going wild because the dollar and other currencies are unmoored; when central banks try to manipulate value, productivity cannot be maintained.
Judy Shelton was director of the Sound Money Project at the Atlas Network; in 2012 she joined TheGoldStandardNow.Org as a senior advisor. In March 2018, she was confirmed by the U.S. Senate as the United States director of the European Bank for Reconstruction and Development. Shelton is known as a critic of the Federal Reserve. She has called for a 0% inflation target, contradicting the bank's current 2% target. She has written that a "fundamental question" of economics is, "Why do we need a central bank?"
Why Judy Shelton Would Be a Boon For Federal Reserve
By JOHN TAMNY, Special to the Sun | February 17, 2020
Judy Shelton Would Help Redeem Republican Promises
Editorial of The New York Sun | February 12, 2020
Judy Shelton's Moral Contract
Editorial of The New York Sun | February 13, 2020
The best move for President Trump after today's hearing for his nominees to the Federal Reserve would be to withdraw his nomination of Christopher Waller and stick with Judy Shelton. That's our reaction to the calls for Mr. Trump to withdraw Ms. Shelton after a premeditated attack on her by the Democrats and one or two Republicans. It was a disgraceful performance.
No single feature of it was quite as disgraceful as the question Senator Sherrod Brown put to Mr. Waller and the answer Mr. Waller delivered. "Given Ms. Shelton's answers on monetary policy and thirty years writing on the gold standard," the oleaginous Ohioan asked Mr. Waller, "would you recommend we confirm her to the Fed?"
A Day That Should Live In Infamy
by David R. Henderson via EconLog
August 15, 2019 is the 48th anniversary of President Nixon’s announcement of a 90-day freeze on all wages and prices. What followed after 90 days were various phases that caused the controls to last into 1974. The worst effects of the price controls were in the oil and gasoline markets, where OPEC’s price increase in the fall of 1973, combined with binding price controls, led to shortages, lineups, rationing, occasional violence in lines, and, arguably, President Carter’s Rapid Deployment Force, which was later changed into U.S. Central Command (CENTCOM.) So August 15, 1971 is a day that should live in infamy.
Revitalizing the Spirit of Bretton Woods,
@75 Compendium 2019.
All That Glitters Is Not Gold
by John H. Cochrane via Grumpy Economist
I wrote a Wall Street Journal Oped on the gold standard, partly in response to last week's Oped by James Grant (whose "PhD standard" is a great quip) and Greg Yp's excellent column on Judy Shelton and gold.
Every Era's Monetary And Financial Institutions Are Unimaginable Until They're Real
by John H. Cochrane via Grumpy Economist
Every era’s monetary and financial institutions are unimaginable until they’re real, writes Tyler Cowen in an excellent Bloomberg.com essay on the anniversary of Bretton Woods.
Which Judy Shelton would show up at the Fed?
Ramesh Ponnuru | Bloomberg Opinion
Toward a sterling crisis
Desmond Lachman | AEIdeas
THE FEDERAL RESERVE & THE PROFESSOR STANDARD DESTROYS US WAGES, GROWTH AND DOLLAR STABILITY, TIME FOR REGIME CHANGE AT THE FED
Regime Change For the Fed -- And Honest Rates
By Special to the Sun | May 19, 2019
Is the Fed Insolvent? Editorial of The New York Sun | February 13, 2019
Trump Responsible for Strong Dollar
Desmond Lachman, The Hill
'In Money We Trust?' Editorial of The New York Sun | December 22, 2018
Game on: The new politics of Gulf financial intervention
Karen E. Young | AEIdeas
The Gulf states are engaged in a battle of economic intervention that rivals the creation of the Bretton Woods system after World War II. The effects will be profound and are only beginning to emerge across the Middle East and Horn of Africa.
Trade’s Costs Are Not Losses
Donald Boudreaux, American Institute for Economic Research
A Reciprocal Solution to the US-China Trade Dispute
Shang-Jin Wei proposes a balanced and reciprocal approach to resolve escalating Sino-American tensions once and for all.
The US Will Lose Its Trade War with China
Anatole Kaletsky thinks America's strength can be turned against it, simply by stimulating Chinese domestic demand.
The mafia-like nature of authoritarian states and why it matters
Clay R. Fuller | AEIdeas
No alternative in sight to dollar as global reserve currency
BY WILLIAM PESEK
Trump may take the United States' currency down the same rabbit hole he accuses Beijing of burrowing into, unsettling the global trading system
Trump should repair trade deals, not destroy them
Neena Shenai and Joshua P. Meltzer | The National Interest
For many in Washington, the president’s decisions have been all but a declaration of war on the international trading system, an assault on the settled benefits of “globalization” that team Trump has decried from the beginning. But it’s high time “globalists” take some responsibility for the declining constituency for free trade. Now is the time to fix the system, recognize its flaws, and implement the fixes that will again mean prosperity for all Americans.
Consumption is America’s Achilles’ heel in a trade war
BY DAVID P. GOLDMAN
A trade war produces only losers and the Washington administration should not operate under the illusion that China is more fragile than the US
Growth, Not Tariffs, Will Fix our Trade Deficits
Jorge González-Gallarza, E21
President Trump yesterday pledged 10 percent tariffs on another $200 billion of Chinese imports. But economic growth is already eating away at the very trade deficit he’s seeking to ax with these tariffs. Trade data for May, when adjusted for seasonal variation, show that the trade deficit was down $3 billion from April—from $46.1 billion to $43.1 billion.
Does A Capital Account Surplus Necessarily Imply A Trade Deficit?
by David R. Henderson via EconLog
No. Bob Murphy explains why. He points out that a capital account surplus necessarily implies a current account deficit. But, he notes, a current account deficit is not the same as a trade deficit. Why?
Venn diagram of the day on trade as a form of technology
Mark J. Perry | AEIdeas
George P. Shultz On The Future Of The International System
interview with George P. Shultz via The Long Now Foundation
Hoover Institution fellow George Shultz discusses changing demographics and what that will do to shape the future more than the politics of Washington.
National And International Monetary Reform
by John B. Taylor via PolicyEd
Recent deviations from sound, rules-based monetary policy have led to an uneven economic recovery. The Federal Reserve should return to a rules-based monetary policy in order to promote economic growth and stability.
The Dark Matter of Trade
Ricardo Hausmann, Project Syndicate
The Dollar’s Privilege Is a Terrible Thing to Waste
Steven Englander, Bloomberg View