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39121. Afghanistan from the Cold War through the War on Terror

Author:
Paul D. Miller
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
If anyone has earned the right to say "I told you so," it is Barnett Rubin. One of the foremost authorities on Afghanistan, Rubin saw earlier than most the dangers emerging from that blighted land. In his work–as author of The Fragmentation of Afghanistan, an adviser to the United Nations for several years after 2001, a professor at New York University, and an adviser to the U.S. State Department's Special Representative for Afghanistan and Pakistan from 200–Rubin worked to warn against, prevent, and mitigate the perennial crises afflicting Afghanistan and South Asia.
Political Geography:
Pakistan, Afghanistan, United States, and South Asia

39122. Editor's Note

Author:
James A. Dorn
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Federal Reserve Act was passed on December 23, 1913. It was designed to provide an elastic currency that would respond to the needs of trade. There was nothing in the Act about price stability, interest rates, or full employment. The expectation was that the United States would continue to define the dollar in terms of gold, and that the operation of the international gold standard would ensure long-run price stability.
Political Geography:
United States

39123. A Limited Central Bank

Author:
Charles I. Plosser
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Douglass C. North, co-winner of the 1993 Nobel Prize in Economics, argued that institutions were deliberately devised to constrain interactions among parties—both public and private (North 1991). In the spirit of North's work, one theme of this article will be that the institutional structure of the central bank matters. The central bank's goals and objectives, its framework for implementing policy, and its governance structure all affect its performance.
Political Geography:
United States

39124. A Century of Central Banking: What Have We Learned?

Author:
Jerry L. Jordan
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
All of us who are interested in the century-long experience of central banking in the United States owe a great debt to Allan Meltzer. His several-years-long efforts gave us over 2,000 pages of careful documentation of decisionmaking in the Federal Reserve for the first 75 years (Meltzer 2003, 2010a, 2010b). The first score of years transformed a lender-of-last-resort, payments processor, and issuer of uniform national currency into a full-fledged central bank with discretionary authority to manage a fiat currency.
Political Geography:
United States

39125. Operation Twist-the-Truth: How the Federal Reserve Misrepresents Its History and Performance

Author:
George Selgin
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
For a private-sector firm, success can mean only one thing: that the firm has turned a profit. No such firm can hope to succeed, or even to survive, merely by declaring that it has been profitable. A government agency, on the other hand, can succeed in either of two ways. It can actually accomplish its mission. Or it can simply declare that it has done so, and get the public to believe it.
Topic:
Government
Political Geography:
United States

39126. The Need for a Price Stability Mandate

Author:
Athanasios Orphanides
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The founding of the Federal Reserve was a good idea, but its performance during its first hundred years has been hampered by the lack of clarity of its mandate. At times its mandate was interpreted as requiring the pursuit of multiple targets resulting in the failure to safeguard price stability over time. This article reviews the evolution of the Federal Reserve's mandate and argues that Congress should clarify the primacy of price stability as the central bank's mandate to ensure that the Federal Reserve will better safeguard monetary stability going forward.
Political Geography:
United States

39127. The Troubling Suppression of Competition from Alternative Monies: The Cases of the Liberty Dollar and E-gold

Author:
Lawrence H. White
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Proposals abound for reforming monetary policy by instituting a less-discretionary or nondiscretionary system ("rules") for a fiat-money- issuing central bank to follow. The Federal Reserve's Open Market Committee could be given a single mandate or more generally an explicit loss function to minimize (e.g., the Taylor Rule). The FOMC could be replaced by a computer that prescribes the monetary base as a function of observed macroeconomic variables (e.g., the McCallum Rule). The role of determining the fiat monetary base could be stripped from the FOMC and moved to a prediction market (as proposed by Scott Sumner or Kevin Dowd). Alternative proposals call for commodity money regimes. The dollar could be redefined in terms of gold or a broader commodity bundle, with redeemability for Federal Reserve liabilities being reinstated. Or all Federal Reserve liabilities could actually be redeemed and retired, en route to a fully privatized gold or commodity-bundle standard (White 2012). All of these approaches assume that there will continue to be a single monetary regime in the economy, so that the way to institute an alternative is to transform the dominant regime.
Topic:
Government
Political Geography:
United States

39128. Clearing House Currency

Author:
Richard H. Timberlake, Jr.
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Federal Reserve System is no longer just an unconstitutional monetary institution promoting a continuing inflation; it has also become, with quantitative easing, an unauthorized fiscal agent for the U.S. government. The fiat currency and equally fiat bank reserves it creates are much in contrast to the private currency and bank reserves that the commercial banks' clearing house associations provided in the latter half of the 19th century. It is that episode I review here.
Topic:
Civil War
Political Geography:
United States

39129. Nominal GDP Targeting: A Simple Rule to Improve Fed Performance

Author:
Scott B. Sumner
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The history of central banking is a story of one failure after another. This record does not mean that our actual monetary regimes have been the worst of all possible regimes—far from it. But it does mean that we can improve policy by learning from experience. Every proposed reform is a response to a previous failure, an implicit display of lessons learned.
Political Geography:
Canada

39130. Fed versus Market Regulation

Author:
Jeb Hensarling
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Before I get into the body of the remarks, I want to thank the Cato Institute for everything it stands for and everything it has meant to me. As I was walking in the foyer, I noticed a copy of the Cato Journal on a table there. I recall as an undergraduate student at Texas A University in the 1970s that I took $25 dollars—and I'm a guy who worked my way through college—of my hard-earned money to invest in the Cato Journal. That was money I could have invested in long necks at the Dixie Chicken, our local watering hole. Also, I would like to thank John Allison. If you have not read his book, The Financial Crisis and the Free Market Cure: Why Pure Capitalism Is the World Economy's Only Hope, I commend it to you. Finally, I would like to tell you that as chairman of the House Financial Services Committee, before I decide to move out on any particular issue, I certainly glean the scholarship of Cato in general and Mark Calabria in particular.
Political Geography:
America

39131. Market Discipline Beats Regulatory Discipline

Author:
John A. Allison
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
I am going to talk from a different perspective because I am the only person who actually ran a bank that's been speaking today, and from that context I can tell you with absolute certainty that market discipline beats regulatory discipline. In fact, I will argue that regulatory discipline will always fail to reduce volatility and will slow economic growth. These observations are based on my understanding of public choice theory and particularly on 40 years of concrete experience in the banking business.
Political Geography:
United States

39132. How Should Financial Markets Be Regulated?

Author:
Martin Hutchinson and Kevin Dowd
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Financial regulation is a recurring and central issue in contemporary policy discussions. Typically, leftists want more of it, while proponents of free markets want less, or preferably, none of it. We would suggest, however, that the central issue is not whether markets should be regulated, but by whom—by the market itself, which includes self-regulation by market practitioners, or by the state or one of its agencies. To put it in Coasean terms, what is the most appropriate institutional arrangement by which markets—including financial markets-should be regulated?
Political Geography:
United States

39133. The Case for a Centennial Monetary Commission

Author:
Kevin P. Brady
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
By every economic measure, our nation is presently mired in a disappointing economic recovery. In fact, ours is the weakest recovery of the past half century. Uncertainty reigns as the purchasing power of the dollar declines. What ails us goes well beyond federal fiscal policy, and it is certainly not the result of an irrational marketplace. What ails us goes much deeper to our nation's monetary policy, which is well overdue for a review.
Political Geography:
America

39134. Prospects for Fundamental Monetary Reform

Author:
Gerald P. O'Driscoll, Jr.
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The intellectual climate has never been more open to a critical analysis of existing monetary institutions both here and abroad. When the Germans agreed to a monetary union, they were promised that they would keep the Bundesbank; only the name would be changed to the European Central Bank. Instead, Germans with whom I have spoken now think they got the Banca d'Italia. In the United States, before the financial crisis, the Federal Reserve was held in high regard by the public. Now, at least in some circles, "the Fed" has become a term of opprobrium, not unlike "the IRS."
Political Geography:
United States, Europe, and Germany

39135. Why the Fed's Monetary Policy Has Been a Failure

Author:
R. David Ranson
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Passing its 100th birthday, the Federal Reserve is receiving unprecedented scrutiny. We (the public) are living through the consequences of its attempts to bolster the U.S. economy through exceptionally low interest rates and the conversion of great quantities of debt to money. Although these efforts are ongoing, we are disappointed. Even with the help of strenuous actions on the fiscal side, economic and credit-market recovery from the recession of 2008–09 was notoriously slow. It took 15 quarters for U.S. real GDP to pass its pre-recession high in the fourth quarter of 2007, compared to only 7 quarters following the deep recession of 1981–82. On a per capita basis, there was an even starker contrast between the two recoveries. Moreover, the Fed remains a suspect in the genesis of the financial crisis that precipitated the Great Recession. The ultimate test of its role as overseer and regulator of the commercial banking system met with a very poor result.
Political Geography:
United States

39136. The Federal Reserve and the Dollar

Author:
Lewis E. Lehrman
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
To evaluate the history of the Federal Reserve System, we cannot help but wonder, whither the Fed? and to consider wherefore its reform—even what and how to do it. But first let us remember whence we came one century ago.
Topic:
War
Political Geography:
Europe

39137. Book Review: Rise of the Warrior Cop: The Militarization of America's Police Forces

Author:
Jonathan Blanks
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Criminal justice reform has been gaining momentum in Washington, attracting policymakers from both sides of the aisle. Draconian mandatory minimum sentences, overcrowded prisons, and bloated criminal justice budgets have made reform a bipartisan issue. This is undoubtedly a positive development, but—as is typical with the political process—the most popular reforms are not enough. Most of the political capital and rhetoric focuses on "back-end" criminal justice reforms, such as sentencing reform, early release, and alternatives to incarceration. While these reforms are sorely needed, the "front end" of the criminal justice system—criminal laws, the courts, and policing itself—also needs thorough examination. Radley Balko's Rise of the Warrior Cop is an exemplar of what these assessments should look like in the American context.
Political Geography:
America and Washington

39138. Book Review: Foreign Policy Begins at Home: The Case for Putting America's House in Order

Author:
Travis Evans
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
For the better part of a decade, the United States has been mired in mediocrity, settling for what feels like a new normal of low eco- nomic growth, stagnant wages, political intransigence, and an unending war or terror. Many think America's better days are behind it. Richard Haass, the president of the Council on Foreign Relations, disagrees. In Foreign Policy Begins at Home , Haass attempts to reverse American defeatism and assuage fears of American decline, arguing instead that the United States is simply underperforming, suffering from "American made" problems that can be corrected by restoring the "foundations of its power." He explains that America's true strength abroad comes from its strength at home, and if America is to provide global leadership it "must first put its house in order." While much of Foreign Policy focuses on policy prescriptions that would restore American strength, the true contribution of the book is its explanation of why such a strategy is needed.
Topic:
Foreign Policy
Political Geography:
Japan, China, and America

39139. Book Review: Why Capitalism?

Author:
Tom G. Palmer
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In Why Capitalism? Meltzer has assembled a number of short studies of policy, the good and the bad, tied together by an aphorism from Immanuel Kant: "Out of timber so crooked as that from which man is made, nothing entirely straight can be carved.
Political Geography:
North Korea

39140. Book Review: Change They Can't Believe In: The Tea Party and Reactionary Politics in America

Author:
Emily McKlintock Ekins
Publication Date:
07-2014
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In this review, I will focus on three main points: their test of whether the tea party is comprised of "reactionary" or "responsible conservatives," their statistical methods testing if racism and a preference for social dominance drive tea party supporters, and their comparison of the tea party to the Ku Klux Klan of the 1920s. The authors prematurely reject the argument that the tea party is primarily motivated by genuine concerns about spending, the size and scope of government, and taxes in part because they rely on a problematic comparison of local tea party group websites to the National Review Online (NRO). From this analysis, they conclude the movement is a contemporary manifestation of paranoid reactionary conservatism.
Political Geography:
America