Big Change: The CMFA Weekly Newsletter
Has the Fed Been Breaking the Law? 
Are the Fed's interest on reserves (IOR) payments legal? The 2006 law authorizing IOR required the payments to be below short-term market rates, but since 2008 IOR has exceeded the federal funds rate and 3-month T-Bill yields.
  • Read more here
Knight Debates Payday Lending
Are payday loans a consumer financial tool, or are they an instance of exploitative usury? How, if at all, should policymakers respond to these loans' popularity? Thaya Brook Knight discussed these questions with Center for American Progress' Joe Valenti on Scholar's Mate, an online policy debate show.
  • Watch the debate here.

Miss the Monetary Rules Conference?

Full Video Coverage 

Check out the video footage from Wednesday's event here

Dealers of Last Resort 

Perry Mehrling blogs about the talk he gave at the Monetary Rules conference, discussing the evolution of the monetary rules debate, and how today's system is a "brave new world of market liquidity" where central banks are called upon to serve as "dealers of last resort." Read more.

Monetary Policy Rules Based on Money 

The ineffectiveness of interest rate targeting at the zero lower bound is often used as an argument against a strict monetary policy rule. But in his paper for the conference, Peter Ireland argues central banks can implement a nominal spending target rule by adjusting the money supply, independent of interest rate behavior. Read more.

Take Note 


34th Annual Monetary Conference:


Negative interest rates and quantitative easing have created severe distortions in asset markets, increasing risk taking and politicized credit allocation, while the lack of a monetary rule to guide policy decisions has led to great uncertainty and increased financial volatility. In November, Cato’s 34th Annual Monetary Conference will explore the connection between Central bank discretion and financial turmoil. Find out more here.
Cato Institute • 1000 Massachusetts Ave, NW • Washington, D.C. 20001 • Phone (202) 842 0200

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