Topic: Inflation

Central Banking, Inflation, International, Sound Money Project

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

Inflation, International, Monetary Policy

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 …

Authoritarianism, Economic History, Inflation

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

Inflation, Monetary Policy, Socialism

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, Financial Markets, Inflation, Research

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

Inflation, Monetary Policy, Sound Money Project

Disinflation Dream Come True

– December 1, 2023

“The Fed will probably keep the fed funds target range unchanged in December. Officials previously signaled additional tightening, but things have changed.” ~Alexander W. Salter

Inflation, International, Monetary Policy, Sound Money

Argentina Agonistes: The Separation of Money and State

– November 29, 2023

“The Argentine peso has lost 93 percent of its value in just the past 4 years. Anyone who could carry out transactions using dollars always did so; holding pesos was little different from simply setting your wealth on fire.” ~Michael Munger

Inflation, International, Monetary Policy, Sound Money Project

Hyperinflation and Dollarization: A Path to Economic Stability for Argentina

– November 25, 2023

“The risk of hyperinflation in Argentina does not arise from the intention to dollarize but from a central bank that appears incapable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent.” ~Nicolas Cachanosky

Inflation, Monetary Policy, Sound Money Project

Timiraos on Supply-Side Disinflation

– November 24, 2023

“Slowing down total spending growth (current-dollar GDP) by hiking interest rates and shrinking the balance sheet clearly mattered. Supply-side improvements do too, but they’re likely playing the role of the sidekick rather than the hero.” ~Alexander W. Salter

Economic Trends, Inflation, Monetary Policy

Black Friday 2023 Will Test Consumer Confidence

– November 23, 2023

“Although Black Friday is a day of discounts, rebates, and other sales promotions, examining the price changes in the most-marketed merchandise categories may provide some insights as to what consumers face this year.” ~Peter C. Earle

Art and Culture, Inflation, Monetary Policy, Research

AIER’s Thanksgiving Cost Index Climbs Over 5 Percent from 2022 to 2023

– November 22, 2023

“The constituents of the Thanksgiving Cost Index include turkey, sauces and gravies, bread, canned fruit, vegetables, and pies and cakes.” ~Peter C. Earle

Central Banking, Inflation, Monetary Policy, Sound Money Project

The Fed Delivered Disinflation

– November 16, 2023

“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~Alexander W. Salter