Topic: Central Banking

Central Banking, Economic Theory, Inflation, Monetary Policy

Monetarism Remains a Useful Guide on Inflation

– July 12, 2022

“If the Federal Reserve raises interest rates too quickly, sharply declining M2 growth will signal the risk of recession. Monitoring M2 growth can help in making sure the Fed tightens monetary policy at the appropriate pace, not too fast and not too slow.” ~ Peter N. Ireland

Central Banking, Crisis, Inflation, Monetary Policy

Inflation, Unemployment, and Fed Credibility

– July 11, 2022

“Any time it looks like there’s a tradeoff between unemployment and inflation, something has gone very wrong. We could’ve avoided both horns of the dilemma if the Fed had done its job.” ~ Alexander William Salter

Books, Central Banking, Free Markets, Monetary Policy

Hollywood’s Monetary Policy

– July 8, 2022

“What is fact versus fiction in this story? While we should surely be wary of Fed-induced risk taking and credit misallocation, I’m skeptical that this was a major problem in the QE period.” ~ Thomas L. Hogan

Central Banking, Crisis, Economic History, Monetary Policy

Strike Three for the Federal Reserve

– July 4, 2022

“No batter always gets on base but America, nay the world, has a high-quality pinch hitter that it benched a century ago: the Gold Standard. It’s not perfect but it is far better, and fairer, than the Fed.” ~ Robert E. Wright

Central Banking, Government, Inflation, Monetary Policy

Better Explanations for Inflation

– June 29, 2022

“We have enough information to conclude policy mistakes, especially on the demand side, go a long way toward explaining today’s inflation.” ~ Alexander William Salter

Central Banking, Financial Markets, Monetary Policy

Will Federal Reserve Losses Impact Fed Shareholders or Affect Monetary Policy?

– June 25, 2022

“Since it started raising interest rates, the Fed has already experienced mark-to-market losses of epic proportions, and will soon face large operating losses, something it has never seen in its 108-year history.” ~ Paul H. Kupiec & Alex J. Pollock

Central Banking, Economic Education, Government, Public Choice and Public Policy

Can The Fed Save Us?

– June 22, 2022

“The realities of Public Choice should make everyone think twice when asserting that the Fed or any agency should be doing something specific to fix the economy and that they will be able to make the right choice.” ~ Fernando M. D’Andrea & Ryan M. Yonk

Central Banking, Economic Education, Inflation, Monetary Policy

We Still Need Milton Friedman

– June 13, 2022

“Monetary policy should be about money—not specific markets, but their common denominator. The sooner we enlist Friedman to help ‘run the show,’ the faster we can clean up our economic messes.” ~ Alexander William Salter

Central Banking, Currency, Economic Education

Paul Krugman and the “Ersatz” Theory of Private Currencies

– June 12, 2022

“Private paper currencies, including notes issued by ordinary commercial banks without the benefit of official guarantees, have never been driven to extinction by the mere presence of official alternatives.” ~ George Selgin

Books, Central Banking, Economic History

In Bernanke We Trust?

– June 9, 2022

“When central banking’s role is understood in neo-Keynesian terms—i.e., from a macroeconomic standpoint that emphasizes top-down demand-side management of the economy—it’s easy to understand why central bankers might gradually succumb to a Masters-of-the-Universe mindset.” ~ Samuel Gregg

Central Banking, Inflation, Monetary Policy

Are Supply Chain Issues Driving Inflation?

– June 8, 2022

“Inflation can be a serious problem, especially if it becomes persistent. Yet, the willingness of politicians to blame supply disturbances and corporations rather than acknowledging that loose monetary policy is largely responsible for today’s inflation is even more worrisome.” ~ Nicolás Cachanosky

Books, Central Banking, Government, Monetary Policy

Money and the Rule of Law: Looking Back After a Year

– June 7, 2022

“We face even more difficult challenges ahead. We who believe in good economics and prudent political economy have our work cut out for us if we want to bring the rule of law to central banking.” ~ Alexander William Salter