Topic: Sound Money Project

Inflation, Monetary Policy, Sound Money Project

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

Inflation, Monetary Policy, Sound Money Project

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

Inflation, International, Sound Money Project

Dollarization in Argentina: A Missed Opportunity

– February 13, 2024

“The delayed implementation of dollarization in Argentina presents challenges that could have been avoided had Milei honored his promise to abandon the peso straightaway.” ~Nicolás Cachanosky

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

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Monetary Policy, Sound Money Project

The Fed Says Its Record Losses Don’t Matter

– February 6, 2024

“While not a groundbreaking revelation for any central bank, the lack of concern about the economic and institutional implications of monetizing financial obligations is cause for concern.” ~Nicolas Cachanosky

Inflation, Monetary Policy, Sound Money Project

Time for the Fed to Ease Up

– January 29, 2024

“Even if Fed economists have underestimated the natural rate of interest by half, monetary policy looks slightly tight. It looks very tight if the natural-rate figures are anywhere close to correct.” ~Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Inflation On Target in December

– January 26, 2024

“Monetary policy remains very tight. Interest rates are much higher than they were just prior to the pandemic. And the Fed is no longer accommodating expansionary fiscal policy.” ~William J. Luther

Central Banking, Inflation, Monetary Policy, Sound Money Project

Happy New Year! Have Some Inflation

– January 13, 2024

“After a rough couple of rounds, inflation has come out swinging. It doesn’t have the legs for a knockout punch, but it remains a troublesome opponent.” ~Alexander W. Salter

Central Banking, Financial Markets, Sound Money Project, Taxation

Who’s Winning the Race for Real-Time Payments?

– January 6, 2024

“The extent to which the Federal Reserve will take measures to hold back TCH-RTP’s growth was not yet clear (and maybe it still isn’t). Institutions may be hedging their bets or testing both systems.” ~Nicolás Cachanosky

Inflation, Monetary Policy, Sound Money Project

Inflation: It’s Not the Supply Side

– December 31, 2023

” Some combination of fiscal and monetary policy remains the best explanation for the once-in-a-generation inflation rates that peaked in summer 2022, as well as their gradual decline.” ~Alexander W. Salter

Central Banking, Crisis, Inflation, Sound Money Project

Dollarization Is Not Magic

– December 23, 2023

“Rather than dismissing it as magic, one should recognize that dollarization is a pragmatic approach to restoring stability in high-inflation countries that lack credible institutions.” ~Nicolás Cachanosky

Central Banking, Inflation, Monetary Policy, Sound Money Project

Inflation Undershoots Fed Projections

– December 23, 2023

“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther