Lawrence H. White – What Type of Inflation Target?

– May 2, 2010

“For much of monetary history, inflation targeting was unnecessary. There was no need to worry about constraining the central bank’s inflationary proclivities because no central bank existed. The quantity of basic money was constrained by the mints’ co …

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“The Limits of Monetary Policy”

– April 28, 2010

“History has shown that monetary stability—money growth consistent with a stable and predictable value of money—is an important determinant of economic stability. Safeguarding the long-run purchasing power of money is also essential for the future of p …

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“The Case for Auditing the Fed is Obvious”

– April 28, 2010

“Recently, the Federal Reserve has significantly altered the procedures and goals that it had followed for decades. It has more than doubled its balance sheet, paid interest to banks on reserves held as deposits with the Fed, made decisions about which …

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“Inflation May Not Be Kind to the Stock Market”

– April 26, 2010

“Investors seem to see inflation as no big deal, or maybe even a good thing. But they forget how inflation killed the stock market in the 1970s… and just how easily those conditions could return. Federal Reserve Chairman Ben S. Bernanke is now seen as …

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“Free Market Money – Instead of Political Manipulation”

– April 21, 2010

“Money is the most important commodity in an economic system Indeed, money ‘makes the world go ’round.’ This is because money is the general medium of exchange. We sell our products and services for money, and then use it to buy the products and servic …

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“BOE Unanimously Kept Bond Plan at 200 Billion Pounds”

– April 21, 2010

“Bank of England policy makers unanimously kept their bond-purchase plan at 200 billion pounds ($307 billion) in April as some officials showed mounting concern at the prospect of a prolonged bout of faster inflation. The nine-member Monetary Policy Co …

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“Fed Kohn Paper: Crisis Early Warning Requires Better Data”

– April 20, 2010

“While, in hindsight, some of the data available to the Federal Reserve and other authorities gave notice of the financial crisis, more data and a different approach to analyzing them are needed if a reliable ‘early warning system’ for future crises is …

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“Unemployment and Inflation Inch Up in Europe”

– March 31, 2010

“The unemployment rate in the euro area inched up to touch double digits in February, while inflation accelerated more than economists had forecast, probably a result of higher food and oil prices, according to data released Wednesday. Eurostat, the Eu …

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Inflation

– March 24, 2010

“Inflation rates vary from year to year and from currency to currency. Since 1950, the U.S. dollar inflation rate, as measured by the December-to-December change in the U.S. Consumer Price Index (CPI), has ranged from a low of −0.7 percent (1954) to a …

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“Giving the Fed New Powers Ignores History”

– March 17, 2010

“The Fed’s own origins are evidence for this point. It is usually argued that the Fed was created to avoid the banking crises that plagued the United States in the late 19th century. That is true to an extent. What it misses is that those crises were t …

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“Competitve Currencies, Legal Restrictions and the Origins of the Fed”

– March 17, 2010

“In the last several years, economists have produced numoerous studies examining both the theoretical operations and historical manifestations of unregulated banking systems. Recent examples of historical investigations are the studies by L. White (47) …

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“More Muscle to Fed”

– March 15, 2010

“Mr. Dodd’s bill would allow the Fed to examine any bank-holding company with more than $50 billion in assets, and large financial companies that aren’t banks could be lassoed into the Fed’s supervisory orbit. This came after Treasury officials pushed …

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