Pertinent Category: Daily Economy

FOMC Holds Rates, Revises Forward Guidance

– June 12, 2024

“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther

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Prices Stable in May: Time to Cut Rates?

– June 12, 2024

“M2, the most commonly cited measure of the money supply, is up 0.53 percent from a year ago. Since real income and population are growing faster than this, current M2 growth also suggests money is tight. But this is speculative.” ~Alexander W. Salter

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AIER’s Everyday Price Index Unchanged in May 2024

– June 12, 2024

“The recent data, combined with the deceleration in core CPI in April, suggests the resumption of disinflation. But policymakers have indicated a need for several months of reduced price pressures before considering interest rate cuts.” ~Peter C. Earle

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Protectionists Are Wrong: Free Trade is the Path to Prosperity

– June 12, 2024

“Consumers and producers in America are better off with more domestic and international trade. As we don’t want to produce everything we consume daily, trading with others is the most efficient way to meet our needs.” ~Vance Ginn

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The Super Market

– June 12, 2024

“Something that you can purchase with income you’ve earned with just a few minutes of your work-time is something that includes the work-effort of thousands or millions of strangers.” ~Donald J. Boudreaux

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AI Eases Its Own Labor-Market Transitions

– June 11, 2024

“Not long ago, search engines like Google were not understood by the masses, which forced people through experience to learn how to ‘Google’ webpages in the proper way. Submitting a search query is similarly a new language to learn, just like prompting a language model.” ~Samuel Crombie and Jack Nicastro

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Government Failure in One Lesson

– June 11, 2024

“Perhaps the easiest way to explain government failure in one lesson is to remember that there is no such thing as ‘the state.’ Instead, essential decisions about resource use will be made by political actors.” ~Michael Munger

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Politicizing Monetary Policy Won’t Fix the Fed’s Failings

– June 10, 2024

“Even if one thinks Trump is well-suited to make interest rate decisions (and there is little reason to think he is), it does not follow that Trump’s proposed solution would improve monetary policy.” ~Nicolás Cachanosky

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Trade Deficits: Accounting Masquerading as Economics 

– June 10, 2024

“Reducing ‘imports’ would not, in fact, increase GDP at all. At best, doing so would leave GDP unchanged since we would be adding less to consumption, investment, and government spending while subtracting equally less from imports.” ~David Hebert

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No, Biden’s Protectionism Isn’t “All About National Defense”

– June 7, 2024

“Evidence from America’s past… lends no support to those who insist that, absent higher tariffs and subsidies, America will probably be unable to maintain the industrial might she needs to defend herself militarily.” ~Donald J. Boudreaux

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The Dollar and its Domestic Enemies

– June 7, 2024

“The greatest threat to the soundness and utility of the US dollar comes not from shadowy figures in faraway lands, but from unremarkable apparatchiks carrying out the edicts of US officialdom.” ~Peter C. Earle

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Defense Manual for The War on Prices

– June 6, 2024

“The book advocates for a substantial policy shift toward minimal governmental interference, allowing market mechanisms to function unimpeded. Sadly, we are moving in the opposite direction.” ~Vance Ginn

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