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Posts Tagged: “Central Bank Policy“

February 20, 2026 Guest Commentaries

Why Boom-Bust Cycles Validate Austrian Theory

One criticism of the Austrian School’s theory of recessions is that it doesn’t account for the expectations of entrepreneurs, who can anticipate central bank actions which precipitate economic busts. But, as Austrian economist Joe Salerno argues, this criticism betrays a fundamental misunderstanding of how recessions occur. The following article was originally published by the Mises […]

October 29, 2024 Original Analysis

The Model Behind the Madness

Central banks typically make decisions based upon the NK (New Keynesian) model. Its goal is to provide a framework to understand how interest rate decisions end up affecting the various measures of an economy’s performance. It differs primarily from the RBC and Neoclassical models in that it includes the real short term effects of monetary […]

September 6, 2024 Original Analysis

Canada’s Finance Minister Brags About Rate Cuts While Citizens Suffer

In a stunning show of arrogance, Canada’s Minister of Finance took to X/Twitter to gloat about being the first G7 country to begin cutting interest rates. Chrystia Freeland declared victory over national economic hardship by noting that the country’s central bank led the entire developed world with lower rates, displaying a flabbergasting combination of economic […]

June 24, 2024 Original Analysis

ZIRP-Addicted Japan Is Crumbling Under Higher Rates

The message is loud and clear: The Japanese economy has no tolerance for higher interest rates after the Bank of Japan has kept them artificially near zero for decades. Meanwhile, as the largest holders of US Treasury debt, Japan’s economic well-being has become inextricably dependent on the capricious whims of Federal Reserve monetary policy — […]