This paper applies Kirzner’s theory of entrepreneurial alertness to central banking. As opposed to entrepreneurs operating within the market, central banks can operate outside the market by defining its structure and regulations. We label as “super-alertness” the particular type of...

This paper is an introduction to contemporary discussions within monetary theory and policy. The paper focuses on comparing proposals for monetary policy rules. It first lays out an argument for why monetary policy?defined here broadly to mean adjusting the money supply in an attempt to...

We provide an initial assessment of the Federal Reserve's policy response to the COVID-19 contraction. We briefly review the historical episode and consider the standard textbook treatment of a pandemic on the macroeconomy. We summarize and then evaluate the Fed's monetary and emergency lending...