Topic: Central Banking

Central Banking, Financial Markets, Fiscal Policy, Monetary Policy

Federal Reserve Operating Losses and the Federal Budget Deficit

– September 7, 2022

“In 2023, the Fed will likely report tens of billions of dollars in operating losses as it raises interest rates to combat raging inflation. Will Fed losses increase the budget deficit as logic dictates they should, or will they be treated as an off-budget expenditure?” ~ Paul H. Kupiec & Alex J. Pollock

Central Banking, Government, Monetary Policy

The Fed’s Tough Year

– September 2, 2022

“The current push to expand the Fed’s mandates is consistent with Shull’s Paradox, which states that the more blunders the Fed makes, the more powers and prestige it gets. But we should be reducing the Fed’s powers and mandates, not increasing them.” ~ Alex J. Pollock

Central Banking, Economic Education, Monetary Policy

Understanding the Basics of Money Demand

– August 23, 2022

“If nothing else, a cash-balances interpretation of the equation of exchange can help us better understand the relationship between the money supply and nominal income.” ~ Alexander William Salter

Central Banking, Economic Education, Inflation, Monetary Policy

The Fed Needs a Single Mandate

– August 22, 2022

“A purchasing target would direct the Fed towards an achievable goal that would improve American households’ material wellbeing. Legislators from both parties should make a single Fed mandate a key part of their agendas.” ~ Thomas L. Hogan & Alexander William Salter

Central Banking, Economic Education, Inflation, Monetary Policy

Price Stability and Nominal GDP Targeting

– August 18, 2022

“While we should not stubbornly insist on first-best policy if the second-best is all we can get, neither should we ignore the question of which policy is first-best. As long as we are reconsidering the Fed’s mandate, nominal GDP targeting should be on the table.” ~ Alexander William Salter

Central Banking, Economic Education, Government, Monetary Policy

Should the Federal Reserve Set its Own Goals?

– August 12, 2022

“A target that is not determined solely by the Federal Reserve is less subject to changes solely due to deliberations at the Federal Reserve. It will enhance monetary policy’s effectiveness.” ~ Gerald P. Dwyer

Central Banking, Crisis, Free Markets, Socialism

The Progressive Left and the Push to Reset the Federal Reserve’s Legal Mandates

– August 8, 2022

“It is puzzling why former Federal Reserve officials have not vocally denounced these developments for what they are: a direct attack on capitalism, free market driven investment, and Federal Reserve independence.” ~ Paul H. Kupiec

Central Banking, Government, Inflation, Monetary Policy

Price Stability and the Fed

– August 4, 2022

“Politics is compromise. Half a loaf is better than no loaf at all. Price stability is the half-loaf of monetary policy rules. It seems foolish to go hungry simply because haute cuisine is unaffordable.” ~ Alexander William Salter

Central Banking, Economic Education, Monetary Policy

There Are Good Reasons for Monetary Rules

– August 3, 2022

“A good monetary rule does not only identify an appropriate course of action in advance. It also requires monetary policymakers to take that course and, in doing so, reduces the uncertainty businesses and consumers face.” ~ Nicolás Cachanosky

Central Banking, Economic Education, Free Markets

A Simple Guide for Aggregate Demand Management

– July 31, 2022

“We’ve advanced little beyond the classical-liberal prescriptions of free markets, sound money, and peace. ‘Keep it simple, stupid,’ is good enough for government work.” ~ Alexander William Salter

Central Banking, Inflation, Monetary Policy

Should the Fed Stimulate Growth?

– July 28, 2022

“Rather than consider whether the Fed should stimulate growth, we should recognize that its primary task is to prevent over- and under-production.” ~ William J. Luther

Central Banking, Fiscal Policy, Government, Public Choice and Public Policy

The Fed’s Share of Public Debt: Worsening Withdrawal Symptoms?

– July 20, 2022

“Can Congress quit the Fed’s easy money policy that has allowed them to push debt levels well above 100% of GDP, or will the addiction demand more QE to support Washington’s spending habit?” ~ Peter T. Calcagno & Edward J. Lopez