Adam Smith Institute

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New ASI paper "Sound Money" features on CapX and CNBC

The latest ASI paper "Sound Money" has featured on CapX and CNBC. From CapX:

The paper which “applies a free market approach to monetary theory to critically assess recent UK monetary policy” was published by the Adam Smith Institute today.

In particular, it advocates reforms that allow: i) Punitive but open access market operations (OMO) ii) A NGDP average growth target of 2%, and iii) Free banking.

Although each of these proposals is progressively less feasible (both politically and technically), Evans argues that they are progressively more desirable.

And from CNBC:

The Bank of England (BoE) should scrap its rate-setting committee and use quantitative easing as its main monetary tool — before losing its monetary powers altogether, according to a new study.

The bank should also cease targeting inflation and instead focus on nominal (non-inflation adjusted) gross domestic product, "dissident" economist, Anthony Evans, added in the report. This was published on Monday by the Adam Smith Institute (ASI), a U.K. free-market think tank.

Read the full CapX article here.

Read the full CNBC article here.