Helicopter Money to the Rescue

Frank Hollenbeck writes:  Following the unconventional monetary policy of negative interest rates, central banks are now considering an even more desperate measure: “helicopter money.” Milton Friedman is credited with this idea: Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community….

 

Why No Inflation? What With Federal Reserve Actions

Jun 16th, 2011 Economics, Inflation/deflation Bill B. May 2 min read

By Bill B. May, PhD I am not trained as an economist, so you’ll have to excuse my inability to throw around all the fancy programs of the Federal Reserve and their associated acronyms. I sometimes think their intention is to confuse the public. Certainly, Ron Paul feels that way.   In earlier articles, I’ve explored the optimal amount of money that an economy needs…

 

Reasons For Inflation and Deflation, Part III

May 17th, 2011 Economics, Inflation/deflation Bill B. May 8 min read

By Bill B. May, PhD In Part I, we defined the money needed in a society to make it run efficiently. In Part II, the relationship between inflation and too much money in the society was explained as well as the opposite phenomenon, too little money resulting in deflation. But both inflation and deflation of prices can occur as the result of other causes. In…

 

Reasons For Inflation and Deflation, Part II

May 16th, 2011 Economics, Inflation/deflation Bill B. May 4 min read

By Bill B. May, PhD In Part I, we explored the need for money in a smooth running economy and arrived at a formula, as follows: Money needed (MN) in a society is the BWIP plus cash C: MN = BWIP plus C where BWIP at any instant in time is the addition of every entities’ expenses since the last time they got paid (and…

 

Reasons For Inflation and Deflation, Part I

May 15th, 2011 Economics, Inflation/deflation Bill B. May 6 min read

By Bill B. May, PhD In economics, inflation and deflation are important concepts. Basically, inflation is a rising in the price of items whereas deflation is a lowering of prices. But there can be all kinds of reasons for inflation and deflation. One of the primary factors is the money supply where we have seen in other articles that too much money causes inflation and…

 

Deflation: A Natural State of Affairs

Apr 21st, 2011 Economics, Inflation/deflation Bill B. May 4 min read

By Bill B. May, PhD Economists will tell you that deflation is a bad thing and a little inflation is good for the country. Even the top bureaucrats in the government tell us the same thing. But is it true? All of this, no doubt, comes from the Great Depression when prices sunk to the basement. But for some reason, they look differently at inflation…

 

Inflation: Bugaboo or Not?

Mar 3rd, 2011 Economics, Inflation/deflation Bill B. May 4 min read

By Bill B. May, PhD BERNANKE SAYS NO INFLATION The U.S. chairman of the Federal Reserve says he sees no inflation as the result of oil price increases (or his actions to add to the money supply). And Bernanke is supposed to be the U.S. expert in money matters. Selected by a Republican President and supported by a Democratic one, people would expect an unbiased…