When Should the Federal Reserve Have Moved on Inflation?
“Last month, I joined Caleb Brown on the Cato Daily Podcast. We discussed how inflation—and our understanding of inflation—evolved over the last year, when the Fed should have moved on inflation, and how much grace the Fed deserves when we evaluate its monumental miss.” ~ William J. Luther
READ MOREOperation Climate-Change Choke Point
“The Fed—an institution that, time and again, has proven that it cannot forecast the inflation rate or GDP growth over the next three months let alone years into the future—gets to decide what level of individual bank losses are ‘accurate’ in these hypothetical climate apocalypse scenarios.” ~ Paul H. Kupiec
READ MOREThe Renewed Politicization of the Federal Reserve
“Central bank independence can only be maintained by focusing on the narrow goals assigned by Congress. By straying from its mandate, Fed officials have chosen to base their decisions on politics rather than on sound economics.” ~ Thomas L. Hogan
READ MOREThe Fed is Responsible for Great Inflations
“It’s time the Fed accepts responsibility and moves decisively to curb inflation before the problem gets even worse. Volcker’s Fed whipped inflation, and Powell’s Fed can, too.” ~ Nicholas Curott & Tyler A. Watts
READ MOREAsymmetric Average Inflation Targeting and Expectations
“A conventional average inflation target would have anchored expectations and reduced the inflation risk of long-term contracting, promoting economic growth in the process. An asymmetric average inflation target falls far short of that goal.” ~ William J. Luther
READ MOREYes, the High Inflation Rates Will Continue in 2022
“A shift to a more restrictive monetary policy to control inflation is likely to result in a recession. One can only hope that the Fed is able to handle this transition better than it has handled the monetary policy of the recent past.” ~ James D. Gwartney & David Macpherson
READ MOREMandate Drift at the Fed Is Par for the Course
“We must decide, so long as we have a central bank, what we want it to do. The best feasible reforms tighten the Fed’s leash. A constrained Fed is a competent Fed. A drifting Fed is a danger to the public.” ~ Alexander William Salter
READ MOREA Note on the New Russian “Gold Standard”
“Despite the clamor of incorrect headlines, Russia’s embrace of gold amid awful circumstances remains a positive step. Gold is tangentially being utilized to make an existing money more sound.” ~ Peter C. Earle
READ MOREWhy the Money Supply Should (Sometimes) Change
“In the long run, the money supply isn’t that important. But in the short- to medium-run, it’s pretty important. There are good reasons for the money supply to change.” ~ Alexander William Salter
READ MOREHas the Fed Abandoned Its Average Inflation Target?
“Despite affirmations to the contrary, the Fed appears to have abandoned its average inflation target. Excessive nominal spending has pushed prices well above the level consistent with the Fed’s average inflation target.” ~ William J. Luther
READ MOREWho Needs the Dual Mandate?
“The American public understands inflation and policymakers have a reasonable degree of control over it. When choosing a policy rule, we need humility first and foremost. Let’s stop asking the Fed for more than it can deliver.” ~ Alexander William Salter
READ MOREWhere Does Saifedean Think Money Comes From?
“There’s plenty wrong with central banking, no doubt, but showering broken institutions with infinite credit lines and opportunity-cost free funding isn’t one of them.” ~ Joakim Book
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