Topic: 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


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


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


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


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

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


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


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 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