Topic: Inflation

How to Think about Inflation

– March 13, 2022

“If we want to understand inflation, we need a framework to organize our thoughts. Economies are fiendishly complex; without a model that helps us focus on the relevant details, we’re lost in the woods.” ~ Alexander William Salter


Do Greedy Countries Have Higher Inflation?

– March 11, 2022

“Blaming big corporations for inflation no doubt serves the political interests of Sens. Warren and Sanders. But it is inconsistent with the available data. That is not surprising: It is inconsistent with standard monetary economics as well.” ~ Nicolás Cachanosky


Inflation Rips Ahead of March FOMC Meeting

– March 1, 2022

“The Fed should acknowledge that the inflation problem is much worse than it thought when it sets its course of action and adjust course accordingly. More likely, it will stay the course—and inflation will continue to outpace its projections.” ~ William J. Luther


What Can the US Learn from Argentina’s Inflation?

– February 24, 2022

“We can learn by looking at countries that have employed these strategies before. Inflation in the U.S. has been modest by Argentine standards. To keep it that way, the US must avoid repeating Argentina’s mistakes.” ~ Nicolás Cachanosky


Inflation Exceeds Fed’s Projection

– February 17, 2022

“I chalk it up to wishful thinking. Fed officials were not yet willing to tighten monetary policy. They hoped inflation would get better on its own. It didn’t, and their projections underestimated inflation as a result.” ~ William J. Luther


Scapegoating Inflation Will Only Make It Worse

– February 11, 2022

“For the sake of the economy and your grocery bills, let’s hope the administration’s threats of antitrust and price controls are not serious. If the administration really wants to tackle inflation, it needs the Fed to rein in its reckless monetary policy. ~ Kat Dwyer


Fiscal Policy and Inflation

– February 10, 2022

“When it comes to fiscal policy, we’re off the edge of the map. The typical stories told by unreconstructed Keynesians are clearly wrong. But that doesn’t mean we never need to worry about fiscal inflation.” ~ Alexander W. Salter


Is This What Monetary Tightening Looks Like?

– February 6, 2022

“When will the Federal Reserve begin to unwind its balance sheet this time? If the meeting minutes indicate the trajectory of policy, reductions will begin within the next two years.” ~ James L. Caton


Price Controls?!

– February 1, 2022

“Price controls are a bad idea. But support for them appears to be growing. They are a terrible tool for dealing with inflation. They make no effort to reduce nominal spending. And they exacerbate supply constraints.” ~ William J. Luther


Death by Inflation or by Interest Rate Hikes?

– February 1, 2022

“If central banks protect the value of the currency, they will create an economic crisis. If they try to avoid the economic crisis, they will destroy the value of the currency and cause a monetary crisis anyway.” ~ Daniel Fernández


Inflation is High, Will Remain Elevated for Years

– January 31, 2022

“At this stage, two things seem pretty clear: Inflation is high and will likely remain above target for a few years. My own view is that the FOMC is painting a rather rosy picture, and that market expectations provide a better guide for estimating inflation.” ~ William J. Luther


Greedy Corporations and Inflation

– January 29, 2022

“Only a monetary policy geared to reduce inflation will be effective in reducing inflation. This is as true now as when the Federal Reserve lowered inflation in the early 1980s.” ~ Gerald P. Dwyer