Monetary Economics and Banking Policy by George Selgin
Issuers offered 100 year bonds during the gold standard era, George Selgin notes
George Selgin said that, despite some instability, the classical gold standard was widely understood to create mean-reverting price levels over the long run. He added that this long-term ...
George Selgin: Most banking systems operate under fractional reserve principles
George Selgin argued that any banking system with a reserve-to-deposit ratio between 0 and 1 should be considered a fractional reserve banking system. He stated that this definition applies to ...
Dismissal of common banking claim shows lack of knowledge, George Selgin states
George Selgin criticized a widely circulated statement that "fractional reserve banking lets your bank lend out $9 for every $1 you deposit." Selgin said that believing this claim indicates an ...
George Selgin: Bitcoin no longer favored at Bitcoin Beach
George Selgin said that contrary to earlier expectations that Bitcoin would become a preferred medium of exchange for nations, it is reportedly no longer favored at Bitcoin ...
China accumulates gold as a hedge against USD inflation, George Selgin notes
China has been accumulating gold as a hedge against USD inflation, with the Bank of China and People’s Bank together holding trillions of U.S. assets and only a few hundred billion in gold. ...
George Selgin: Interest burden on reserves tied to what U.S. Treasury owes
George Selgin argued that while he does not favor an abundance of bank reserves, the main impact is a shift between reserves and Treasury securities that banks could otherwise hold, both bearing a ...
Energy consumption will drop for those less able to afford higher costs, George Selgin notes
George Selgin questioned the assumption that a central authority would dictate energy consumption reductions, suggesting instead that in most cases, those who cannot afford higher energy costs ...
George Selgin: Combining a fixed monetary base regime like Bitcoin with free banking is proposed
George Selgin discussed the idea of combining a fixed monetary base regime, as exemplified by Bitcoin, with free banking. He stated that he had proposed a similar solution in his first book, ...
Fed started IOR payments early in 2008, George Selgin notes
George Selgin highlights an error in a previous statement, clarifying that the critical timing was October 2008, not 2007. He emphasizes that the Federal Reserve convinced Congress to allow it to ...
George Selgin: Intermediaries help balance increased saving with lending at lower rates
George Selgin explains that when intermediaries, such as central banks, function as intended, an increase in saving that results in higher demand for money balances is matched by increased lending ...
Monetary policy now relies on interest paid on reserves, George Selgin notes
George Selgin highlights that while skepticism toward the U.S. Federal Reserve is warranted and it played a role in post-COVID inflation, the primary determinant of U.S. monetary policy since the ...
George Selgin: Depositors real losses from 1934 devaluation were limited
George Selgin examines the impact of the 1934 devaluation on depositors. He acknowledges that depositors were deprived of a valuable right but argues that their real losses were not greater, as ...
Sound policies reduce banking risks and maximize gains, George Selgin notes
George Selgin highlights Adam Smith's views on fractional reserve banking, referencing Book II, chapter 2 of The Wealth of Nations. He argues that sound banking policies can enhance the benefits ...
George Selgin: Disbanding FOMC will not instantly create stable free-market monetary systems
George Selgin argues that many libertarians mistakenly believe dismantling the FOMC and removing the Eccles Building would quickly lead to the emergence of stable free-market monetary ...
No physical pound coins circulated in Great Britain for a century, George Selgin notes
George Selgin explains that a 'ghost money' metallic unit, when related to other metallic media at fixed rates, is not problematic for monetary systems. He highlights that from 1717 to 1817, the ...
George Selgin: Discount on northern bank notes in NYC or Chicago was under 1 percent by Civil War onset
George Selgin disputes the accuracy of the widely cited 60 percent discount figure applied to northern bank notes during the period leading up to the U.S. Civil War. Instead, Selgin states that ...
Addressing supply shocks can solve some inflation, George Selgin notes
George Selgin argues that remedies addressing adverse supply shocks can be effective if those shocks are the source of inflation. However, Selgin cautions that such steps may not be sufficient ...
George Selgin: Swiss rejected currency monopoly bills in 1876 and 1880
George Selgin highlights that in 1876, the Swiss public decisively rejected a bill aiming to grant a currency issuance monopoly to the confederation. Established issuing banks led the opposition ...
Fed balance sheet shrinkage poses risk to independence, George Selgin warns
George Selgin highlights a recent Macro Musings episode featuring Bill Nelson, which examines the implications of shrinking the Federal Reserve’s balance sheet. According to Selgin, the ...
George Selgin: Questions claims that SSA ended U.S. Great Depression
George Selgin challenges the idea that the Social Security Administration was responsible for pulling the U.S. from the Great Depression. He calls for evidence from reputable economic historians ...
Nominal GDP policy permits inflation and price shifts, George Selgin argues
George Selgin argues that the growing body of literature supporting nominal GDP targeting forms part of what he describes as constant-inflation-ideal 'denialism.' Selgin explains that a policy ...
