The efficiency of business transactions has become increasingly important in the digital age, and an issue that has arguably evolved as a result of free-markets. Already, advances in technology has revolutionized the medium of exchange from tangible hard-cold cash, to an intangible medium,...

Bagus and Howden (2011) argue that price stickiness is a poor justification for advocating a flexible money supply through the issuing of fiduciary media under central or free banking. They view the contraction in output following an exogenous increase in money demand as an optimal response,...

Concerted expansion is a common concern in free banking. This situation is sometimes expressed as a prisoner's dilemma game, as Huerta de Soto (1998 [2006], pp. 664-671) does to show that banks have incentives to collude and expand fiduciary media. This approach, however, does not accurately...

The financial cycle captures systematic patterns in the financial system and is closely related to the concept of procyclicality of systemic risk. This paper investigates the characteristics of financial cycles using a multivariate model-based filter. We extract cycles using an unobserved...

This paper examines the effect of Federal Reserve's large scale purchases of securities on private investment. We find tentative evidence that quantitative easing (QE) stimulated the level of aggregate investment through the interest rate channel by narrowing corporate bond spread. In...

This paper is a review of Danmarks Nationalbank's recent analysis of the prospects of implementing a Central Bank Digital Currency (CBDC) in Denmark. We concur with Nationalbanken's conclusion that CBDC does not add efficiency or further functionality to existing payment solutions. We argue,...

Some attempts were made to evaluate the future value (FV) of the expected value and the variance for various cash flows (CF). The motivation stemmed from some recursive formulas. This method does not apply directly to the evaluation of present values (PV). One can get some estimates for the PV...

Many commentators have argued that if the Federal Reserve had followed a stricter monetary policy earlier this decade when the housing bubble was forming, and if Congress had not deregulated banking but had imposed tighter financial standards, the housing boom and bust - and the subsequent...

The introduction and widespread use of credit cards increases trading efficiency but, by also increasing the velocity of money, it causes inflation, in the absence of monetary intervention. If the monetary authority attempts to restore pre-credit card price levels by reducing the money supply,...