Topic: 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


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


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


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 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


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


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


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


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


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


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


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