This article critiques John B. Taylor's proposal that the Fed use a reaction function to attempt to predict bank demand for reserves. I argue that the Fed does not need to predict the demand for reserves because all the information it requires for hitting its targets is contained in the federal...

This paper engages the last testimony of the Chairman of the Federal Reserve System, Alan Greenspan, before a joint session of Congress in July 2005. It identifies nine areas we relate to the arguments of John Kenneth Galbraith, summarized in his recent contribution, The Economics of Innocent...

When the government issues its own nonconvertible currency--also known as a flexible exchange rate policy--the central bank, as monopoly supplier of net reserves to its member banks, is the (exogenous) source of the risk-free yield curve. Furthermore, in the case of government member bank...

This paper suggests that a public service employment (PSE) or job guarantee (JG) program run on the principles of functional finance can be designed to promote environmental sustainability. Unregulated or poorly regulated capitalist economies are both macroeconomically unsatisfactory (here...