Category Archives: Regulatory Policy

Solid Economic Support for Sensible Financial Reforms

Economic research, including work in the 1970s on time inconsistency, has long provided a rationale for central bank independence in conducting monetary policy. Indeed, the research encouraged the spread of central bank independence and inflation targeting around the world in … Continue reading

Posted in Monetary Policy, Regulatory Policy

New Book on Fed Oversight Reform

Recent legislation to rein in Fed power, including the Fed Oversight Reform and Modernization (FORM) Act, has generated a load of opinion pieces and acrimonious debate, but so far little in the way of in-depth policy research. The purpose of the … Continue reading

Posted in Monetary Policy, Regulatory Policy

An Economic Policy–Performance Cycle

For several years I have writing about an cycle in which economic policy swings toward and away from certain key principles of economic freedom. The poor performance of the U.S. economy during the past decade —the Great Recession, the Not-So-Great … Continue reading

Posted in Fiscal Policy and Reforms, Regulatory Policy

Other Economic Lessons the US Can Learn from Greece

Last week the Senate Foreign Relations Subcommittee on Europe and Regional Security Cooperation held a hearing for which I was asked to address the lessons that the United States can learn from the Greek financial crisis.  One obvious lesson is … Continue reading

Posted in Financial Crisis, Regulatory Policy, Slow Recovery

Make Failure Feasible and End “Too Big To Fail”

Today the Senate held a hearing on a bankruptcy reform proposal which would address the problem of too-big-to-fail head on. The reform applies to large financial firms and makes failure feasible under clear rules without systemic spillovers thereby greatly reducing … Continue reading

Posted in Financial Crisis, Regulatory Policy

The Raisin Case: A Breeze not a Wind of Economic Freedom

The famous raisin case officially closed last week. As part of an old and ongoing government program to intervene in the raisin market to support the price, the government tried to take raisins away from a California raisin grower, Marvin … Continue reading

Posted in Regulatory Policy, Teaching Economics

A Reawakening of Monetary Policy Research

Last May a group of economists, central bankers, market participants, and financial journalists convened at Stanford’s Hoover Institution “to put forth and discuss a set of policy recommendations that are consistent with and encourage a more rules-based policy for the Federal … Continue reading

Posted in Monetary Policy, Regulatory Policy