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CMRE Appoints Daniel Oliver Jr. as President

New York, NY – September 10, 2014 – The Committee for Monetary Research & Education is pleased to announce the appointment of Daniel Oliver as president. Mr. Oliver appears regularly as a guest on financial media outlets, lectures at monetary and investment conferences, and frequently publishes articles on gold, interest rates, and the Federal Reserve. He has served as a director of the CMRE since May 2011 and succeeds Elizabeth B. Currier, who lead the CMRE for over three decades. Previous presidents include J. William Middendorf, who currently serves as chairman, and Donald L. Kemmerer, one of America’s foremost economic historians.

Founded in 1970, the Committee for Monetary Research & Education is a non-profit, educational organization that seeks to promote greater public understanding of the nature of monetary institutions and of the central role that a healthy monetary system plays in the well-being of a free society.

Wall Street Journal Publishes Response by CMRE Director Dan Oliver

New York, NY – August 29, 2014 – In a Wall Street Journal editorial dated August 22, 2014, University of Chicago professor of finance John Cochrane argued that the size of the Federal Reserve’s balance sheet poses no danger of inflation because “[w]hen it is time to raise interest rates, the Fed will simply raise the interest it pays on reserves,” thus preventing the $2.7 trillion of excess reserves of the banking system from entering the economy.

In a letter to editor published by the Wall Street Journal on August 29, CMRE Director Dan Oliver pointed out:

The Fed has been acquiring Treasury bonds with maturities of up to 30 years. When rates eventually rise, the Fed’s income on these bonds will stay the same—for decades. But the Fed will have to increase its payments to the banks immediately to restrain the banks from injecting trillions of dollars of excess reserves into the economy.

The enormous maturity mismatch between the Federal Reserve’s assets, which are now mostly long term, and its liabilities, which are all current liabilities, promises large losses when interest rates finally rise.

Legislation dictates that the Federal Reserve transfer any net income to the U.S. Treasury Department.  On January 6, 2011, the Federal Reserve changes its own accounting principles such that any losses the bank accrues will be recorded as a negative liability to the Treasury Department.

Monetary specialists debate the effect of losses on a central bank’s balance sheet would have on the dollar, however the Federal Reserve accounts for those losses.  In an unpublished section of the letter, Oliver cited Nobel laureate Thomas Sargent’s paper The Ends of Four Big Inflations for the proposition that losses on a central bank’s balance sheet is the direct cause of currency depreciation.

The Committee for Monetary Research & Education is a non-profit, educational organization that seeks to promote greater public understanding of the nature of monetary institutions and of the central role that a healthy monetary system plays in the well-being of a free society.

CMRE President Elizabeth Currier Retires

New York, NY – June 30, 2014 – CMRE President Elizabeth Currier announced her impending retirement at a meeting of the CMRE on May 23, 2014, effective as June 30, 2014.  The board of directors has passed a resolution commending Ms. Currier for her tireless service to the Committee and to the cause of sound money.

Elizabeth Currier was the core of a band of distinguished monetary professionals who founded the CMRE in 1970 to organize the intellectual resistance to the destructive monetary policies then prevalent.  She was intimate with Henry Hazlitt, Jacques Rueff, Malchior Palyi, Robert Mundell, and other monetary scientists who resisted the international order created at Bretton Woods.

Ms. Currier become executive vice president and then the president of the CMRE, in which position she served for over three decades.  She will continue with the CMRE as a director emeritus, and the board of directors will continue to rely on her input.

Founded in 1970, the Committee for Monetary Research & Education is a non-profit, educational organization that seeks to promote greater public understanding of the nature of monetary institutions and of the central role that a healthy monetary system plays in the well-being of a free society.

Sean Fieler May 2014

Sean Fieler discusses “Truth in American Education”.

 

James Grant May 2014

Jim Reminisces about the CMRE and discusses Federal Reserve Policy.

 

Edwin Vieira May 2014

Bob Hoye May 2014

Educate the Fed and Reduce Arbitrary Nonsense

Elizabeth B. Currier May 2014

Tom Selgas May 2014

Robert Mundell

Nobel Prize winning economist and known as the “father” to the euro, Mundell helped start the supply-side economics, showing that the standard Keynesian prescription of artificially low interest rates and high taxes harmed economic growth.