Topic: Central Banking

Inflation was Worse than We Thought

– September 30, 2023

“Although Fed officials were late to tighten monetary policy, their efforts over the last year appear to have worked. The risk today is that monetary policy is too tight—and will remain so for too long.” ~William J. Luther


How Crazy Do You Have to Be to Support Dollarization?

– September 28, 2023

“The whole reason why it is an advantage for a developing country to tie to a major country is that historically speaking the internal policies of developing countries have been very bad. US policy has been bad, but their policies have been far worse.” ~Nicolás Cachanosky


What Should the Federal Reserve Do Now?

– September 26, 2023

“Inflation is running above 2 percent by any measure, and a current temporarily higher rate on short-term securities can reassure markets that the Federal Reserve is aiming at a lower inflation rate.” ~Gerald P. Dwyer


Another Rate Hike? Let’s Not

– September 26, 2023

“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter


How To Be Accidentally Right, Central Banking Style

– September 24, 2023

“Money is broken, and while these activists might not be able to explain how, they’re not wrong in pointing their fingers at the monetary authority at the center of it all.” ~Joakim Book


Fed Continues to Signal Another Rate Hike

– September 20, 2023

“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther


Is Dollarization a Mirage?

– September 18, 2023

“Dollarization would serve as a firewall, protecting the private sector from the fiscal policy fallout.” ~Nicolas Cachanosky


David Malpass on Inflation and Slow Growth

– September 16, 2023

“If we try to push supply-side economics as an inflation-reduction strategy, we’re setting ourselves up for failure by banking on a problem that’s largely solved.” ~ Alexander W. Salter


Don’t Panic over the Latest Inflation Numbers

– September 14, 2023

“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter


Without Rules, the Fed Rules

– September 12, 2023

“Committing to a rule significantly lowers the cost of evaluating Fed policy. And lowering the cost of evaluating Fed policy could make it very clear to a great many people that the Fed is up to no good.” ~ Alexander W. Salter


Dollarization and the Lender of Last Resort

– September 11, 2023

“Typically, there is little risk of losing a lender of last resort in countries with troubled currencies that are considering dollarization because such countries don’t have a lender of last resort to lose.” ~ Nicolas Cachanosky


Entrepreneurs Thrived During America’s Free Banking Era

– September 8, 2023

“Entrepreneurs thrived during the era of free banking in the United States, even with restrictive banking laws, which handicapped private banks from being more efficient.” ~ Michael N. Peterson