Topic: Monetary Policy

Central Banking, Economic Education, Government, Monetary Policy

How the Fed Painted Us into a Corner

– March 19, 2022

“Over the months and years to come, it will be very interesting to see how faithfully the Fed pursues its policy of returning interest rates to normal and sustainable levels—approximately 3-4 percent for the federal funds rate.” ~ Robert F. Mulligan

Central Banking, Government, Inflation, Monetary Policy

What Should Be Done to Fight Inflation? A U.S. Lawmaker Interviews Two Michigan Economists

– March 18, 2022

“The conversation centered around recent comments by US Federal Reserve Bank Chairman Jerome Powell, and how the Federal Reserve intends to bring our 40-year high inflation rate down to levels prior to 2021.” ~ Dr. Timothy G. Nash

Central Banking, Economic Education, Inflation, Monetary Policy

FOMC Projects Higher Inflation

– March 18, 2022

“Fed Chair Jerome Powell’s November statement killed the idea that inflation would be transitory. The most recent projections from the FOMC show how deeply that idea has been buried.” ~ William J. Luther & Morgan Timmann

Free Markets, Government, Inflation, Monetary Policy

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

Books, Economic Education, Monetary Policy

Everything Is the Fed’s Fault: A Review of the Fiat Standard

– March 10, 2022

“The aggressive tone aside, the emphasis on a fiat mindset – one where you get something for nothing and can have something merely by decree – is valuable. The thesis remains unproven, but the proposition lingers long after the final page.” ~ Joakim Book

Central Banking, Economic Education, Monetary Policy

Stages of Quantitative Tightening

– March 9, 2022

“There are several steps to go before the Federal Reserve starts selling assets to reduce the size of its balance sheet. That type of active tightening will probably not begin for a while.” ~ Thomas L. Hogan

Crisis, Gold, International, Monetary Policy

Are Gold Rubles Gold or Rubles?

– March 7, 2022

“The loss of citizens’ purchasing power over decades was scarcely enough to drive states to introduce monetary reforms. It is not surprising that a newly-cast pariah state is embracing gold in a desperate bid to recapture some semblance of normalcy.” ~ Peter C. Earle

Crisis, Monetary Policy, War and Peace

How Will Russia Respond to Financial Sanctions?

– March 7, 2022

“The sanctions are intended to increase the cost of war for the Russian government. Russia currently finds itself outside of the global financial system. Over time, however, the burden of financial sanctions will weaken.” ~ James L. Caton

Crisis, Inflation, Monetary Policy

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

Economic Education, History, Inflation, Monetary Policy

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

Economic Education, Inflation, Monetary Policy

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

Cryptocurrency, Economic Education, Economic History, Monetary Policy

Making Money Myths

– February 14, 2022

“NQA banknote systems have existed in the past. It follows that private NQA paper currency is perfectly possible. It might still be true, of course, that private NQA digital currency isn’t possible. But if I were you, I wouldn’t take Gary Gorton’s word for it.” ~ George Selgin