Inflating

Thursday, September 29th, 2011
Last week the Fed announced "Operation Twist," in which the central bank will buy $400 billion of longer-dated Treasury securities while selling the same amount of shorter-dated Treasuries. This episode epitomizes everything that is wrong with the modern, statist view of money.
Monday, September 19th, 2011

Technically speaking, a policy of upholding or expanding the fiat-money stock in an environment where banks are no longer willing to extend credit and issue new fiat money appears to be technically possible. However, the Austrian School of economics points out that an economy's production structure will be turned upside down once the hitherto relentless rise of fiat money...

Sunday, September 11th, 2011
Early in the history of Atlas, Antony Fisher, its founder, was fundraising for a program to promote sound money.
Tuesday, August 30th, 2011
I am planning to join some of the sharpest minds in business, finance, politics, law and economics, who are working to promote a framework for the future of monetary policy.
Friday, August 12th, 2011
Today in the New York Times Paul Krugman calls for "an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems
Thursday, July 28th, 2011
Fractional reserves is an important component of financial stability. Most of the financial regulation is aimed to control this aspect of banking practice such that banks do not become insolvent and a contagious set of bank runs gets into the financial markets.
Tuesday, July 12th, 2011
“In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal…”
Thursday, June 16th, 2011
Price stability has become the main concern of central banks around the world. Both, inflation and deflation, are considered bad outcomes. But because deflation is considered to be worst than inflation, it became practice to prefer to err to the side of inflation to be sure we avoid deflation.
Monday, June 6th, 2011
Chicago Tribune columnist Steve Chapman claims that fears of coming inflation are “unfounded.” His main arguments:
Wednesday, May 25th, 2011
"Controlling overall inflation is a goal of monetary policy. Measures of overall, or headline, inflation attempt to include changes in the prices paid for a wide variety of goods—that is, what households actually have to pay for their daily purchases.
Tuesday, May 24th, 2011
"To begin, the national debt has provoked concern over the stability of US debt. Last month Standard and Poor’s revised its sovereign credit rating of the U.S. in the long-term from stable to negative. Last week the US reached its debt limit, which, justified or not, has perpetuated this anxiety.
Tuesday, May 24th, 2011
"The Fed is blaming the earthquake in Japan for disrupting first quarter global growth, plus droughts and other natural disasters which didn’t help. The problem for Bernanke and his allies on the Fed is that hardly anyone is buying this argument.
Tuesday, May 24th, 2011
"'Stagflation" is an ugly word for an ugly situation: persistent high inflation combined with high unemployment and stagnant demand in a country's economy. The term was coined by British politician Iain Mcleod in a speech to Parliament in 1965.
Monday, May 23rd, 2011
Roberts and Papola have done it again: a rap video that explains the divergent views of two of the most prominent economists of the 20th century. It’s  better than most textbooks, and entertaining to boot.
Thursday, May 19th, 2011
"The U.S. Consumer Price Index for April provided insight into one reason why the housing market is so quiet. While home prices have been showing steady erosion so far this year, as recorded by the S&P Case-Shiller index, the price level for a basket of consumer goods has been rising.
Thursday, May 19th, 2011
"William Niskanen (2002) estimated a Phillips curve for the United States using annual 1960–2000 data. By adding one-year lagged terms in unemployment and infl ation, he was able to show that this familiar equation is misspecified.
Wednesday, May 18th, 2011
"Could the U.S. economy use an extra $170 billion right about now? Though the economy has shown fitful signs of growth, that growth is still so fragile that it remains to be seen whether it can withstand setbacks such as the rising price of gasoline.
Tuesday, May 17th, 2011

...In the meantime, even Mexico may be trying to get a step or two ahead of the Federal Reserve and the U.S. Treasury Department. In the words of Mexican billionaire Hugo Salinas Price, “Well I think the central bank (of Mexico) is watching what the Federal Reserve has been doing with utter amazement because we have been down that path before and it led to our ruin. So maybe they are saying, ‘We better have a little bit of gold because what is going on with quantitative easing is really hair-raising.’”

Monday, May 16th, 2011
"The US economy is headed for a period of higher inflation and lower growth that makes the nation's debt unappealing when measured against its global competitors, Pimco's Bill Gross told CNBC.

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