Max Gillman

Friedrich A. Hayek’s 1944 acclaimed Road to Serfdom (reproduced by the Institute for Economic Affairs online) supports social insurance for when markets work imperfectly, a long tradition in neoclassical economics now reflected in practice by the implicit or explicit social insurance linked to nearly all fiscal policy: “Nor is there any reason why the state … More International Deposit Insurance with Risk-Based Premia

Time for Positive Interest Rates for Savers Federal Reserve interest rates of 2% to 2.25% aren’t neutral if the inflation rate is 2.61%. 8 Comments Nov. 1, 2018 1:10 p.m. ET Federal Reserve Chairman Jerome Powell speaks in Washington, June 13. Photo: michael reynolds/EPA/Shutterstock In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed, … More WSJ: Time for Positive Interest Rates for Savers

Extract from new forthcoming Berkeley E Journal of Macroeconomics: Advances, “The Welfare Cost of Inflation with Banking Time”, Max Gillman, 2018. Below is Section 2 of this article: “US Law on the Target Inflation Rate” According to the US Federal Reserve Bank the FOMC (Federal Open Market Committee) has since 2012 adopted an explicit inflation … More US Law on the Target Inflation Rate

The Wall Street Journal: Letter “Fed Should Slowly Unwind Excess Reserves” Before 2008, competition between banks forced them to loan out or otherwise invest excess reserves. 4 Comments Sept. 26, 2018 3:15 p.m. ET SEC chairman, Jay Clayton in April Photo: Yuri Gripas/Bloomberg News Regarding your editorial “Sharing the Wealth of Markets” (Sept. 21): Yes, … More WSJ:”Fed Should Slowly Unwind Excess Reserves”

Thomas Gordon : Writing in Wall Street Journal: December 14, 2017 @Max Gillman Good comments and informatory about why banks are now paid interest  on reserves.   As it concerns the article, I don’t think they were paying a huge interest rate (I thought it was less than 1%, but probably more than most banks were … More Comment on “Cold Turkey and Moral Hazard”

By MAX GILLMAN and DAVID C. ROSE April 2017 Two weeks ago President Trump told House leaders that he liked most of the House Ways and Means Committee’s “Blueprint” for tax reform. The blueprint does indeed significantly improve tax policy in a number of ways. But a careful consideration of what the latest economic theory … More Turning a Good Blueprint for Tax Reform into a Great One

St. Louis Post-Dispatch stltoday.com St. Louis Post-Dispatch Column Is the House blueprint for tax reform good for St. Louis? By Max Gillman and David C. Rose Mar 8, 2017 President Donald Trump recently stated that he will release an outline for comprehensive tax reform in the coming weeks, and if his previous statements are accurate, … More Is the House blueprint for tax reform good for St. Louis?

With the December 2017 quarter of a percent hike in the Federal Reserve Bank interest rate to 1.5%, banks will receive 1.5% interest on reserves parked at the Fed instead of lending them out. Lending them out means added investment. Lending out the excess reserves means increased demand deposits at private banks. And increased demand … More Cold Turkey and Moral Hazard : Why the Fed Should Stop Paying Interest on Excess Reserves to Banks

UMSL Economics Research Associate Tamas Csafabi (Cardiff PhD, 2016) has started  a new STL Macro Dynamics Club. Click on this weblink to learn about and join the club http://stlmacroclub.com/markdown/. For more information please contact Tamas directly at csabafit@umsl.edu.

 Presentation by Max Gillman FULL PDF TEXT OF TALK:       Thank you very much for having me before this distinguished group. I especially thank Harry Langenberg, Dave Rose and William Rogers for this honor. My talk involves some monetary theory, history, and policy with a neoclassic economic perspective that monetary policy is a part of … More Some Corporate Tax Reform History & the Inflation Tax: Lecture given at the Discussion Club of St. Louis, March 19, 2014: