Interest Rates and Monetary Aggregates During the Lesser Depression – Part 1

By Brett Fiebiger, Ph.D A liquidity trap may be defined as a situation in which conventional monetary policies have become impotent, because nominal interest rates are at or near zero: injecting monetary base into the economy has no effect, because base and bonds are viewed by the private sector as perfect substitutes … [W]hatever the […]

Frederick Soddy on Endogenous Money & Debt-Deflation

By Brett Fiebiger, PhD “Soddy distilled his eccentric vision into five policy prescriptions, each of which was taken at the time as evidence that his theories were unworkable: The first four were to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical […]

The International Dimensions of Currency Autonomy

By Brett Fiebiger, Ph.D Modern economies operate on fiat monetary systems with an accent on plural. Anyone who takes a look at policymaking decisions around the global economy will soon observe that there seems to be substantial differences in the ability of policymakers to determine macro policies… why? In this post I will seek to provide […]