Topic: Monetary Policy

AIER’s Everyday Price Index Spikes 0.73 Percent

– March 12, 2024

“While tailwinds from normalizing supply chains are cooling goods prices, concerns linger about the sustainability of this trend. In particular, the February CPI readings strongly suggest that the January updraft was not anomalous.” ~Peter C. Earle

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The Fed (Almost) Ruined Black Friday

– March 12, 2024

“A record $1.3 trillion in credit card debt may be masking a weaker economy than the top-line spending numbers suggest, as consumers accrue debt to maintain a standard of living being crushed by rising prices in housing, groceries, and energy.” ~Spence Purnell

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Does Argentina Have Enough Dollars to Dollarize?

– March 11, 2024

“It’s not that Argentina lacks dollars. Rather, it is that the Argentine government lacks the will to commit to its dollarization plan.” ~Nicolás Cachanosky

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Faster Growth and Interest Rates: Even Harder than You Think

– March 7, 2024

“Higher rates could be a sign of loose money, not tight, depending on how far from the policy change we’re looking and how fast the market adapts.” ~ Alexander W. Salter

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Is Inflation on the Rise Again?

– March 1, 2024

“The Fed should be looking ahead and adjusting monetary policy in light of its forecasts. Instead, its eyes are fixed on the rear-view mirror.” ~William J. Luther

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Congress Overspends, but the Fed Inflates

– February 28, 2024

“At most, large deficits impelled the Fed to support the market for government debt by purchasing more debt than it should have. The central bank, not the fiscal authorities, is the residual determiner of aggregate demand.” ~Alexander W. Salter

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Two Kinds of Transitory Inflation

– February 16, 2024

“Team Transitory’s narrative just doesn’t cohere. Whether we’re trying to explain the Great Inflation of the 1970s and early 1980s, or the inflation of the past two years, we need to rely on demand-side mechanisms.” ~Alexander W. Salter

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An Inflation Resurgence, or Just Relative Price Changes?

– February 14, 2024

“Microeconomic relative-price dynamics increasingly drive inflation measurements. That means the Fed should not be afraid to ease off the brakes.” ~Alexander W. Salter

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AIER’s Everyday Price Index Rises 0.52 Percent in January 2024 

– February 13, 2024

“The January 2024 CPI report highlights the challenges of returning inflation to the Fed’s target range and suggests a bumpy road ahead.” ~Peter C. Earle

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The flag of the American Federal Reserve System waving in the wind with the flag of the United States Washington DC March 2022

Time to Tame the “Apolitical” Fed?

– February 8, 2024

“The Fed’s self-conception as an apolitical technocracy blinds it to the degree to which it has weighed in on fundamental political issues, which instead ought to be deliberated in Congress.” ~Alexander W. Salter

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Inflation Already Ruined Your Super Bowl Party

– February 7, 2024

“The persistent inflation of the past three years saw spikes in tickets and hotel rooms, but also in the seemingly more affordable alternative: hosting or attending Super Bowl parties at home.” ~Peter C. Earle

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Milei’s Bid for Freedom

– February 6, 2024

“Rather than simply bemoan the poor policies of Peronist statism, Milei laid out precisely why the alternative to statism — liberated markets — can offer so much more.” ~Paul Schwennesen

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