Topic: Sound Money Project

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

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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

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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

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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

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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

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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

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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

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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

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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

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The Inflationary-Profits Hypothesis is Mush

– December 18, 2023

“Once a bastion of sound reporting, the Wall Street Journal’s economy desk is slowly descending into incoherence…Simple economics demonstrates why the inflationary-profits hypothesis is bunk.” ~Alexander W. Salter

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Despite CPI Uptick, Monetary Policy Remains Tight

– December 12, 2023

“The slight bump in inflation won’t spook them into going even tighter. And despite the cries from financial markets, it’s too early to contemplate cuts.” ~Alexander W. Salter

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Lessons from Argentina’s Dollarization Debate: The Challenge of the Commitment Device

– December 11, 2023

“If a large country like Argentina were to fare better under dollarization, economists would be forced to reconsider the role of central banks in monetary theory.” ~Nicolas Cachanosky

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