central banks

Should currencies be allowed to float freely?

Since the financial crisis set in motion the largest monetary experiments in recent history, accusations of “currency wars”, or “currency manipulation”, have been commonplace. These reflect the predominant liberal dogma, which dictates that exchange rates should be determined by market forces, with the role of central banks limited to silently observe as bystanders. Any attempt … Continued

Infrastructure planning and moral hazard

As central banks around the world deplete their monetary arsenal without succeeding in reviving growth, strong consensus is building for large fiscal stimulus in the form of infrastructure investments. Contrary to QE, widely criticized for contributing to the increase in social inequality, infrastructure investments are palatable to all parts of the political spectrum as they … Continued