Topic: Monetary Policy

Central Banking, Inflation, Monetary Policy

Disinflation Dreams and Keynesian Confusion

– August 14, 2023

“America’s central bank has a lot of work to do to restore its lost credibility. Nevertheless, we have reasons to be optimistic.” ~ Alexander W. Salter

Currency, Gold Standard, International, Monetary Policy

Only a Retail Gold Standard Could Dethrone the Dollar

– August 12, 2023

“If a large subset of countries, like the BRICS, adopted the retail gold standard, the United States and the European Union would have to join, or watch demand for their fiat currencies decline.” ~ Robert E. Wright and Byron B. Carson III

Inflation, Monetary Policy, Sound Money Project

John Cochrane Offers Incomplete Explanation of Inflation

– August 9, 2023

“His analysis implies the Fed could buy every financial asset in the world without causing inflation.” ~ Alexander W. Salter

Central Banking, Monetary Policy, Sound Money Project

The Federal Reserve’s Quasi-Fiscal Deficit

– August 6, 2023

“Although realizing losses—or, running quasi-fiscal deficits—is new to the Fed, it is more common in developing countries. The consequences of running quasi-fiscal deficits include inflation and lack of central bank credibility.” ~ Nicolas Cachanosky

Central Banking, Monetary Policy, Sound Money Project

Waller Explains Why the Fed is Still Raising Rates

– August 6, 2023

“While Waller sees the recent slowdown in inflation as positive, he is not ready to declare victory as it is only a single data point.” ~ Bryan P. Cutsinger

Central Banking, Inflation, Monetary Policy, Sound Money Project

Disinflation good, Fed bad

– August 2, 2023

“There’s no way for non-market actors to direct credit more reliably than market actors. The discipline of profit and loss is essential.” ~ Alexander W. Salter

Central Banking, Currency, Gold, Monetary Policy

A World Dedollarized is Gold Remonetized

– August 1, 2023

“What matters is having a ready means of transacting outside dollar-based systems and institutions in exigent circumstances: to maintain continuity of trade, and to hedge against the policy errors of central bankers.” ~ Peter C. Earle

Central Banking, Inflation, Monetary Policy, Sound Money Project

Will Lower Inflation Halt Rate Hikes?

– July 29, 2023

“No matter how you slice it, real rates look sufficiently restrictive to bring down inflation. Indeed, they may be overly restrictive at this stage in the tightening cycle.” ~ William J. Luther

Central Banking, Inflation, Monetary Policy

FOMC Raises Rates in July

– July 26, 2023

“The Fed’s experiment with ‘average inflation targeting,’ which made policy even more discretionary and hence less predictable, has been a failure. It’s time for the Fed to recommit to credible price stability.” ~Alexander W. Salter

Central Banking, Monetary Policy, Sound Banking, Sound Money Project

Central Bankers, Let the Price System Work!

– July 26, 2023

“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Does Greedflation Fit the Facts?

– July 25, 2023

“While an increase in market power would certainly affect real income growth, the magnitude necessary to explain inflation is implausibly large.” ~ Bryan Cutsinger

Economic Education, Inflation, Monetary Policy

Economics is Not Easy

– July 20, 2023

” Since everyone looks to prices for accurate information about relative scarcity, having prices that are being inflated artificially is misleading, and results in multiple different economic actors all trying to expand at once.” ~ Michael Munger