Topic: Inflation

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


The Inflationary-Profits Hypothesis is Mush

– December 18, 2023

“Once a bastion of sound reporting, the Wall Street Journal’s economy desk is slowly descending into incoherence…Simple economics demonstrates why the inflationary-profits hypothesis is bunk.” ~Alexander W. Salter


Are Entrepreneurs Insufficiently Incited to Compete in Markets that Serve Low-Income People?

– December 17, 2023

“We then must ask: If low-income people are indeed beset by monopoly prices, why don’t entrepreneurs sweep in to compete those prices down to competitive levels?” ~Donald J. Boudreaux


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


AIER’s Everyday Price Index Sees Largest Decline in 2023

– December 13, 2023

“While the likelihood of another rate hike in the final FOMC meeting of 2023 this week is low, the slowing rate of disinflation and stubbornly elevated prices suggest that speculation regarding the start of rate cuts is, at best, early.” ~Peter C. Earle


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


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


Lessons from Argentina’s Dollarization Debate: The Challenge of the Commitment Device

– December 11, 2023

“If a large country like Argentina were to fare better under dollarization, economists would be forced to reconsider the role of central banks in monetary theory.” ~Nicolas Cachanosky


The West Should Strengthen Ties with Argentina’s New President Javier Milei

– December 8, 2023

Argentina just elected Javier Milei, a boisterous, wild-haired economist with a pro-market agenda to transform the nation’s economy. After decades of Peronist rule, Argentina is now home to the first libertarian head of state in modern history, a feat …


Why Ordinary People Enable Totalitarians, Part 1 

– December 7, 2023

“After the First World War in Germany, peace came with hyperinflation, which obliterated all wealth. The bonds of civilization fray during hyperinflation.” ~Barry Brownstein


Argentina’s Rampant Inflation, Explained (in One Chart)

– December 5, 2023

“Whichever definition one prefers to use — an expansion of the money supply which leads to price increases, or a broad and sustained increase in consumer prices — inflation is caused by the governments and central banks who control the money supply.” ~Jon Miltimore


Business Conditions Monthly October 2023

– December 4, 2023

“While we continue to impartially and vigilantly assess incoming data, our current analysis still points to a recession occurring before September 2024 as the most probable scenario.” ~Peter C. Earle