Topic: Monetary Policy

Crisis, Financial Markets, Inflation, Monetary Policy

Making Sense of Monetary Policy and the Future of Inflation

– June 10, 2022

“The expansion of circulating currency has diminished to rates comparable to pre-pandemic lows. These factors and the current state of business inventories suggest that inflationary pressures are likely near their limit.” ~ James L. Caton

Central Banking, Inflation, Monetary Policy

Are Supply Chain Issues Driving Inflation?

– June 8, 2022

“Inflation can be a serious problem, especially if it becomes persistent. Yet, the willingness of politicians to blame supply disturbances and corporations rather than acknowledging that loose monetary policy is largely responsible for today’s inflation is even more worrisome.” ~ Nicolás Cachanosky

Books, Central Banking, Government, Monetary Policy

Money and the Rule of Law: Looking Back After a Year

– June 7, 2022

“We face even more difficult challenges ahead. We who believe in good economics and prudent political economy have our work cut out for us if we want to bring the rule of law to central banking.” ~ Alexander William Salter

Central Banking, Inflation, Monetary Policy

When Did The Fed Change Its Tune?

– June 3, 2022

“The Fed could have—and should have—taken prompt action to bring down inflation. It didn’t. Now inflation is much higher—and much harder to deal with—than it otherwise would have been.” ~ William J. Bergman & William J. Luther

Economic Education, Inflation, Monetary Policy

Yes, Supply Problems Can Cause Inflation

– June 1, 2022

“We use models, mathematical or otherwise, because they help us understand the real world. Let’s not define that world out of existence. Supply problems can, in fact, cause inflation.” ~ Alexander William Salter

Financial Markets, Inflation, Monetary Policy

Inflation Slowed in April, But Remains High

– May 30, 2022

“The Fed increased its federal funds rate target by 50 basis points in May 2022 and looks set to follow with similar rate hikes in June and July. The price level data from April shows no anticipatory effects of the policy.” ~ William J. Luther

Crisis, Government, Monetary Policy

“Woke” Fed Fell Asleep on the Job

– May 22, 2022

“With inflation raging at the highest rate in 40 years, it is time to reexamine the Fed’s legitimate responsibilities.” ~ Nicholas Curott & James McClure

Crisis, Inflation, Monetary Policy, Video

Who Is to Blame for Inflation? (Video)

– May 20, 2022

“Is ‘Putin’s Price Hike’ real? Are supply chain disturbances the most significant source of inflation, or is there more to the story? Thomas Hogan gives us his perspective on the causes of inflation.” ~ Kate Wand

Financial Markets, Inflation, Monetary Policy

Inflation: What Causes It, and When Will it Subside?

– May 18, 2022

“The growth rate of currency in circulation has been back to pre-crisis rates for at least 2 quarters. We should expect inflation and the growth rate of expenditures to follow and inflationary winds to subside as a result.” ~ James L. Caton

Economic Theory, Inflation, Monetary Policy

Should the Fed Devalue Our Currency to Implement Negative Interest Rates?

– May 17, 2022

“Where Agarwal and Kimball comment that the zero lower bound ‘is not a law of nature, but a policy choice,’ I suggest that the same is true about the need to fight an excess demand for money by cutting an interest rate instrument or target.” ~ Lawrence H. White

Art and Culture, Economic Education, Government, Monetary Policy

A Drinking Man’s Guide to Monetary Policy

– May 14, 2022

“Just like drinking, expansionary monetary policy can provide a temporary (or transitory) high at first (faster real output growth and reduced unemployment). However, the ill effects come later (in an inflation “hangover”).” ~ Gary M. Galles

Economic Education, Inflation, Monetary Policy

The Federal Reserve’s Moving Target

– May 13, 2022

“If persistent deviations from the Federal Reserve’s target can be costly in terms of resource misallocation, imagine the costs associated with simultaneous fluctuations in both inflation and its target for inflation.” ~ Joshua Hendrickson