Topic: Monetary Policy

For the Least of These: Against Inflation Economics

– May 8, 2022

“To tame the inflationary beast and to build a more humane economy, especially for the poor, we need to grapple with inflation’s practical and moral effects.” ~ Dylan Pahman & Alexander William Salter

READ MORE

Lisa Cook is Unqualified for the Federal Reserve Board

– May 4, 2022

“It’s time to end mandate drift once and for all. We need qualified nominees who understand the proper role of monetary policy. Unfortunately, Dr. Cook falls short on both counts.” ~ Alexander William Salter

READ MORE

The Fed is Responsible for Great Inflations

– May 3, 2022

“It’s time the Fed accepts responsibility and moves decisively to curb inflation before the problem gets even worse. Volcker’s Fed whipped inflation, and Powell’s Fed can, too.” ~ Nicholas Curott & Tyler A. Watts

READ MORE

Prices Continue to Rise, Exceeding Fed Projections

– April 29, 2022

“The Fed seems resolved to see inflation climb further. I expect FOMC members will revise up their projections of inflation again in June. They should revise their course of action, to bring inflation down as planned, instead.” ~ William J. Luther

READ MORE

Asymmetric Average Inflation Targeting and Expectations

– April 27, 2022

“A conventional average inflation target would have anchored expectations and reduced the inflation risk of long-term contracting, promoting economic growth in the process. An asymmetric average inflation target falls far short of that goal.” ~ William J. Luther

READ MORE

Supply Disturbances Do Not Explain High Inflation

– April 25, 2022

“Unfortunately for the administration, their politically-convenient supply-side stories explain far too little. Today’s inflation is primarily the result of excessive nominal spending, which the Fed could have and should have offset.” ~ William J. Luther

READ MORE

Yes, the High Inflation Rates Will Continue in 2022

– April 24, 2022

“A shift to a more restrictive monetary policy to control inflation is likely to result in a recession. One can only hope that the Fed is able to handle this transition better than it has handled the monetary policy of the recent past.” ~ James D. Gwartney & David Macpherson

READ MORE

Mandate Drift at the Fed Is Par for the Course

– April 24, 2022

“We must decide, so long as we have a central bank, what we want it to do. The best feasible reforms tighten the Fed’s leash. A constrained Fed is a competent Fed. A drifting Fed is a danger to the public.” ~ Alexander William Salter

READ MORE

Trade, Debt, and Growth

– April 21, 2022

“What are we getting for this unprecedented debt? Mostly, all it’s purchased for us is political leadership which can only charitably be characterized as mediocre.” ~ Robert F. Mulligan

READ MORE

Why the Money Supply Should (Sometimes) Change

– April 4, 2022

“In the long run, the money supply isn’t that important. But in the short- to medium-run, it’s pretty important. There are good reasons for the money supply to change.” ~ Alexander William Salter

READ MORE

Has the Fed Abandoned Its Average Inflation Target?

– April 1, 2022

“Despite affirmations to the contrary, the Fed appears to have abandoned its average inflation target. Excessive nominal spending has pushed prices well above the level consistent with the Fed’s average inflation target.” ~ William J. Luther

READ MORE

Who Needs the Dual Mandate?

– March 28, 2022

“The American public understands inflation and policymakers have a reasonable degree of control over it. When choosing a policy rule, we need humility first and foremost. Let’s stop asking the Fed for more than it can deliver.” ~ Alexander William Salter

READ MORE