Monetary Economics and Banking Policy by George Selgin
GDP is one of many well-being indicators, George Selgin notes
George Selgin questions criticism of GDP as a measure of economic performance. He explains that GDP, while imperfect, quantifies the total value of a nation's output and does not embody any ...
George Selgin: Excess demand growth is main driver of inflation
George Selgin argues that while supply shortages can lead to increases in standard inflation metrics, substantial inflation is primarily the result of excess demand growth. He adds that fiscal ...
Free banking depends on having a base standard, George Selgin argues
George Selgin explains that free banking can operate alongside any monetary standard, but it cannot replace the need for an established base currency such as gold, silver, fiat, or Bitcoin. He ...
George Selgin: Fed gold reserves rose gradually with inflows after devaluation
George Selgin highlights how the Federal Reserve's gold reserves increased over time rather than experiencing an immediate $2.8 billion jump following devaluation. He explains that instead of a ...
Hoover-era actions and U.K. gold decision intensified economic downturn, George Selgin notes
George Selgin points out that policies implemented during the Hoover era, including the Smoot-Hawley tariff, further worsened the U.S. economic depression that lasted from 1929 to 1933. He adds ...
George Selgin: Gap between U.S. actual and potential real GDP remained until WWII
George Selgin highlights that while U.S. real GDP increased significantly between 1933 and 1937, this did not constitute a full recovery. He explains that potential real GDP also grew rapidly ...
No shift in monetary or fiscal policy drives different outcomes, George Selgin notes
George Selgin addresses the relationship between interest rates, money stock, and total spending. He clarifies that maintaining a constant interest rate does not necessarily imply stability in the ...
George Selgin: FDR pushed deficit spending after 1937-8 recession
George Selgin describes how, following the 1937-8 recession attributed to fiscal and monetary tightening approved by President Franklin D. Roosevelt, Keynesian economists persuaded FDR to back a ...
Bitcoin is not commonly used for payments, George Selgin argues
George Selgin questions Bitcoin’s status as money, emphasizing its limited adoption as a payments medium. He notes that Bitcoin is now seldom the preferred option for transactions even within ...
George Selgin: Bailouts occur when spending collapses and costs cannot be recovered
George Selgin challenges the notion of market fundamentalism by stating that whenever spending collapses to the point where producers are unable to recover their production costs, any measures ...
Central banks gained currency-issuing privileges by legislation, George Selgin argues
George Selgin challenges the argument that central banks arise naturally and that free banking systems are unsustainable. He points out that currency-issuing privileges were granted to specific ...
George Selgin: State regulations drove problems in antebellum U.S. banking
George Selgin challenges the common perception that antebellum U.S. banking was unregulated. According to Selgin, state government regulations, while strict, were often poorly designed and ...
Official U.S. dollar currency held overseas estimated at about half, George Selgin notes
George Selgin comments that around half of the official U.S. dollar currency supply is believed to be held overseas. He characterizes this figure as a standard but rough estimate, noting it is ...
George Selgin: Wildcat banks did not cause 1837 Panic
George Selgin argues that wildcat banks were not common and only emerged after Michigan passed its General Banking Act on March 15, 1837, coinciding with the onset of the 1837 Panic. Selgin ...
Comparing New Deal deficits to potential GDP offers clearer insight, George Selgin notes
George Selgin challenges the conventional approach to measuring the impact of New Deal deficits. He argues that to truly understand their economic stimulus, it is essential to compare the size of ...
George Selgin: Salerno process leads to market-clearing prices without sales data
George Selgin discusses a process described by Salerno where sellers do not need to consult actual sales results or inventory levels to inform their pricing decisions. According to Selgin, this ...
Transitioning from floor to scarce reserve system is challenging, George Selgin argues
George Selgin highlights ongoing difficulties in moving away from the Federal Reserve's floor system and the resulting large balance sheet. Selgin, who has long been critical of both the floor ...
George Selgin: Floor system has increased bank dependence on Fed in liquidity shortages
A move to a floor system by the Federal Reserve has undermined the interbank fed funds market, according to George Selgin. Previously a primary source of last-minute loans for banks, this market's ...
St. Louis Fed President Musalem suggests current rates could persist, George Selgin argues
George Selgin comments on recent statements from St. Louis Fed President Alberto Musalem, who indicated that the Federal Reserve's current interest rate settings are likely to remain appropriate ...
George Selgin: Deflation is not always harmful despite persistent myth
George Selgin challenges the common belief that deflation is inherently detrimental regardless of its cause. He notes that despite numerous studies indicating otherwise, this myth persists in ...
Price adjustments post 1929 linked to demand collapse, George Selgin argues
George Selgin raises a hypothetical scenario regarding economic adjustments following 1929. He suggests that if there had been only an Austrian boom and no collapse in the money stock and ...
