Topic: Sound Money Project

Central Banking, Inflation, Sound Money Project

Inflation Declined in March, But Remains High

– April 26, 2024

“Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther

Fiscal Policy, International, Monetary Policy, Sound Money Project

Is Argentine Disinflation Sustainable?

– April 26, 2024

“Milei’s lack of political support in Congress adds to the uncertainty surrounding his ability to successfully pass deregulatory reforms… it is premature to declare victory on the fiscal and inflationary fronts in Argentina.” ~Nicolás Cachanosky

Central Banking, Monetary Policy, Sound Money Project

A Better Model Won’t Fix The Fed

– April 23, 2024

“The whole point of expectations-responsive monetary policy is to remove the discretionary and technocratic elements from central banking. Disappointingly but unsurprisingly, the Fed is doing the opposite: doubling down on discretion and technocracy.” ~Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Why Haven’t We Whipped Inflation Yet?

– April 19, 2024

“The best we can do is recalibrate models when we get new data. But that’s like driving the car while looking out the rearview window…hardly ideal for knowing how to adjust your steering.” ~Alexander W. Salter

Central Banking, Inflation, Sound Money Project

Inflation We Can Feel But Don’t Measure

– April 16, 2024

“Regardless of whether one thinks that the CPI should include interest rates and/or asset prices, it seems clear that consumers factor in these costs when evaluating the cost of living.” ~Joshua R. Hendrickson

Inflation, Monetary Policy, Sound Money Project

The Fed and Political Independence: It’s Complicated

– April 5, 2024

“We should focus less on who’s allowed to run the Fed and more on what the Fed’s allowed to do in the first place.” ~Alexander W. Salter

Inflation, Sound Money Project

Inflation Remained Elevated in February

– March 29, 2024

“Market participants continue to expect three cuts this year — and that those cuts will begin in the first half of the year. But they have adjusted the odds.” ~William J. Luther

Central Banking, Economic Education, Inflation, Sound Money Project

Fact-Checking “Greedflation”

– March 18, 2024

“By fueling an overall increase in demand, central banks can generate a sustained increase in the general level of prices — inflation. Central banks are the primary source of money creation, not firms.” ~Nicolás Cachanosky

Central Banking, Inflation, Monetary Policy, Sound Money Project

Inflation Remains Elevated. Is Money Actually Tight?

– March 13, 2024

” Fed watchers expect the Federal Open Market Committee will keep rates steady when they meet on March 19-20. In light of the CPI data, that’s a defensible move.” ~Alexander W. Salter

Central Banking, International, Monetary Policy, Sound Money Project

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

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Inflation, Sound Money Project

Fed Admits It Was Wrong – Kind Of

– March 5, 2024

“So rather than starting to tighten policy in the fourth quarter of ‘21, as Powell described, the Fed was implicitly loosening policy through May of ‘22.” ~Thomas L. Hogan