Topic: Monetary Policy

Central Banking, Inflation, Monetary Policy, Sound Money Project

The FOMC Was Right to Not Hike

– November 7, 2023

“The best approach for the FOMC is to keep its rate target where it is. We should wait for additional inflation data in November before calling for even-tighter monetary policy.” ~Alexander W. Salter

Economic History, Gold Standard, Monetary Policy

Gobbledegook! The Bretton Woods System of Fixed Exchange Rates According to E.C. Harwood

– November 6, 2023

“In 1954, Harwood testified in the US Senate about the ‘advantages of returning to the full gold standard with the nation’s currency redeemable in gold coin on demand,’ as it had been throughout most of the nation’s history before the New Deal.” ~Robert E. Wright

Inflation, Monetary Policy, Sound Money Project

Inflation Remains High in September

– November 3, 2023

“The Fed should keep monetary policy tight as inflation returns to its 2-percent target. But if it tightens too much, it will push the economy into an unnecessary and painful recession.” ~William J. Luther

Economic Trends, Monetary Policy, Sound Money Project

Alan Blinder: Let Them Eat Disinflation

– November 1, 2023

“Blinder thinks deflation always and everywhere causes economic harm. ‘It takes a truly sick economy to cause deflation,’ he warns. But he’s wrong.” ~Alexander W. Salter

Cryptocurrency, Monetary Policy, Sound Money Project

The IMF is Wrong – and Right – About Crypto

– November 1, 2023

“The IMF and FSB’s recommendations are transparently pro-government and anti-citizen. They overstate the potential harm of cryptocurrencies and propose monitoring systems that would benefit tyrannical governments at the expense of the public.” ~Thomas L. Hogan

Inflation, International, Monetary Policy, Socialism

Argentina’s Canary in the Coalmine

– October 28, 2023

“How can one compare the US to Argentina, which has suffered a century of political instability, and has been a darling of IMF case studies for the past 40 years?” ~Nikolai G. Wenzel and Valentina Yayi Morales

Central Banking, Inflation, Monetary Policy, Sound Money Project

Rising Treasury Yields Can’t Substitute for Fed Rate Hikes

– October 28, 2023

“If the yield curve is the explanation, then market forces aren’t ‘substituting’ for Fed policy. They’re simply reflecting an economic transition from one microeconomic equilibrium in the market for loanable funds to another.” ~Alexander W. Salter

Economic Growth, Inflation, Monetary Policy

Does a Blowout Third-Quarter GDP Number Vindicate Bidenomics?

– October 25, 2023

“US citizens will, in the event of an uncommonly strong third-quarter US GDP release, benefit from taking close note of political self-aggrandizement made in its wake. Upcoming GDP releases may require reminding administration officials of statements made tomorrow regarding the prospects of Bidenomics.” ~Peter C. Earle

Fiscal Policy, Inflation, Monetary Policy, Unemployment

Weak Economy Provides Key Policy Lessons

– October 21, 2023

“Sure, supply-side factors contributed to higher prices in some markets, as did supply chain bottlenecks. But those are short-term fluctuations that don’t tell the entire story of reduced purchasing power for everyone.” ~Vance Ginn

Fiscal Policy, Monetary Policy, Sound Money Project, Taxation

Forced Reconversion to that “Old-Time Fiscal Religion”

– October 17, 2023

“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Steady As She Goes

– October 14, 2023

“But even if new PCE figures confirm a bump in the disinflationary road, it’s still likely best for the FOMC to hold off on further rate hikes.” ~Alexander W. Salter

Business Conditions, Everyday Price Index, Inflation, Monetary Policy

AIER’s Everyday Price Index Rises 0.29 Percent in September 2023

– October 12, 2023

“Spots of price momentum in the September CPI support the Federal Reserve’s higher-for-longer mantra, and raise the possibility that even now policy rates are insufficiently restrictive.” ~Peter C. Earle