Helping Banks Help Themselves: Extended Shareholder Liability

– October 27, 2022

“The best way to reduce systemic risk is to give the risktakers the incentive to economize on risk. An extended liability regime for banking is a simple and elegant way to improve incentives. We should seriously consider it.” ~ Alexander William Salter


Rising Inflation Expectations Pose a New Threat to Fed Efforts

– October 20, 2022

“Herding, of sorts, may thwart the effects of contractionary monetary policy measures to some degree. The Fed has a tough job ahead of it, one which may have just become a bit tougher.” ~ Peter C. Earle


King Dollar’s Uncertain Throne

– October 12, 2022

“With continuing dollar appreciation the likelihood of trade tensions and protectionism increase, as do the possibilities of organized labor agitation. King Dollar is secure for now, but as in all palaces – intrigues persist.” ~ Peter C. Earle


A Very British Fiasco

– October 12, 2022

“These things happen, but they happen a lot to UK financial regulators, and Governor Bailey himself has presided over a good number of regulatory fiascos. In short, the crisis confirms that UK financial regulation is not fit for purpose.” ~ Kevin Dowd


Revisiting the Pokéflation

– September 26, 2022

“During the massively expansionary monetary response to the Covid outbreak, the price of Pokemon cards and other assets shot to unprecedented levels. Contractionary monetary policy now has the opposite effect.” ~ Peter C. Earle & April Liu


What Is Financial Literacy and Why Is It Important? (Video)

– September 23, 2022

“On this episode of Liberty Curious, Robert Wright, historian and Senior Research Faculty at AIER, joins Kate Wand to discuss his new book: Fearless: Wilma Soss and America’s Forgotten Investor Movement.” ~ AIER


No, Hyperinflation Is Not Right Around the Corner

– September 13, 2022

“The pursuit of sound money is more profitably directed at identifying profligate monetary policy measures, rather than the consequenceless prediction of extraordinary, and extraordinarily unlikely, outcomes.” ~ Peter C. Earle


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


The Recession is Here. Will Stagflation Follow?

– July 30, 2022

“An ugly picture is coming into focus: rising inflation, slowing growth, and a job market that looks poised to deteriorate. Bearing in mind the lag associated with employment, it is no longer unthinkable that stagflation may be ahead.” ~ Peter C. Earle


El Salvador and Bitcoin: A Love-Hate Story

– July 25, 2022

“El Salvador can be seen as either a pioneer in the world of cryptocurrencies or as a country that is reckless in its government finances.” ~ Daniel Fernández


Leave the Gas Station Owners Out of It

– July 6, 2022

“Saddling gas station owners with the blame for a particularly damaging aspect of the ongoing inflation increase is, beyond wildly inaccurate, irresponsible and morally unconscionable.” ~ Peter C. Earle


Stocks and Bonds Hurt Alike Under Stagflation

– July 1, 2022

“When bonds and stocks decline a lot and simultaneously it suggests inflation is rising rapidly even as the economy is stagnating or contracting (or will soon do so). For most economists today, that combination is near-impossible.” ~ Richard M. Salsman