Topic: Central Banking

Central Banking, Sound Money, Technology

US Can Thwart the CBDC Onslaught

– February 9, 2024

“The argument that lagging digital dollar development is necessarily bad for Americans ignores a long history of US government promises about gathered data and its use.” ~Peter C. Earle

The flag of the American Federal Reserve System waving in the wind with the flag of the United States Washington DC March 2022

Central Banking, Inflation, Monetary Policy, Sound Money Project

Time to Tame the “Apolitical” Fed?

– February 8, 2024

“The Fed’s self-conception as an apolitical technocracy blinds it to the degree to which it has weighed in on fundamental political issues, which instead ought to be deliberated in Congress.” ~Alexander W. Salter

Central Banking, Monetary Policy, Sound Money Project

The Fed Says Its Record Losses Don’t Matter

– February 6, 2024

“While not a groundbreaking revelation for any central bank, the lack of concern about the economic and institutional implications of monetizing financial obligations is cause for concern.” ~Nicolas Cachanosky

Central Banking, Inflation, Monetary Policy

Profits Do Not Cause Inflation: Causal Fallacies as Economic Disinformation

– January 23, 2024

“Fortunately, the idea that thousands of businesses have colluded to raise prices, boosting their profit margins and engineering the inflation that continues to afflict Americans, is easily disproven.” ~Peter C. Earle

Central Banking, Currency, Monetary Policy

Can BRICS Displace the Dollar?

– January 15, 2024

“The noise from BRICS about creating their own reserve currency and abandoning the dollar is little more than noise. As irresponsible as the Fed has been, BRICS policymakers apparently want to inflate faster than even the Fed will allow.” ~Robert F. Mulligan

Central Banking, Inflation, Monetary Policy, Sound Money Project

Happy New Year! Have Some Inflation

– January 13, 2024

“After a rough couple of rounds, inflation has come out swinging. It doesn’t have the legs for a knockout punch, but it remains a troublesome opponent.” ~Alexander W. Salter

Central Banking, Financial Markets, Sound Money Project, Taxation

Who’s Winning the Race for Real-Time Payments?

– January 6, 2024

“The extent to which the Federal Reserve will take measures to hold back TCH-RTP’s growth was not yet clear (and maybe it still isn’t). Institutions may be hedging their bets or testing both systems.” ~Nicolás Cachanosky

Central Banking, Crisis, Inflation, Sound Money Project

Dollarization Is Not Magic

– December 23, 2023

“Rather than dismissing it as magic, one should recognize that dollarization is a pragmatic approach to restoring stability in high-inflation countries that lack credible institutions.” ~Nicolás Cachanosky

Central Banking, Inflation, Monetary Policy, Sound Money Project

Inflation Undershoots Fed Projections

– December 23, 2023

“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther

Central Banking, Inflation, Monetary Policy, Sound Money

FOMC Holds Rates, Revises Projections

– December 14, 2023

“After months of worrying that they had not yet done enough, FOMC members now seem to think they have a handle on inflation and will see it gradually return to 2 percent. Let’s hope they are correct.” ~William J. Luther

Central Banking, Inflation, Monetary Policy, Sound Money Project

Despite CPI Uptick, Monetary Policy Remains Tight

– December 12, 2023

“The slight bump in inflation won’t spook them into going even tighter. And despite the cries from financial markets, it’s too early to contemplate cuts.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy

Argentina’s New President Should Reframe Its Central Bank Even If He Later Proceeds To Eliminate It

– December 12, 2023

“Establishing trustworthy monetary rules is needed to incentivize fiscal responsibility. Constructing robust institutions that allow monetary authorities to act within constraints is even more imperative.” ~Joaquín Henault