Topic: Sound Money Project

Central Banking, Inflation, International, Sound Money Project

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

Inflation, Monetary Policy, Sound Money Project

Disinflation Dream Come True

– December 1, 2023

“The Fed will probably keep the fed funds target range unchanged in December. Officials previously signaled additional tightening, but things have changed.” ~Alexander W. Salter

Inflation, International, Monetary Policy, Sound Money Project

Hyperinflation and Dollarization: A Path to Economic Stability for Argentina

– November 25, 2023

“The risk of hyperinflation in Argentina does not arise from the intention to dollarize but from a central bank that appears incapable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent.” ~Nicolas Cachanosky

Inflation, Monetary Policy, Sound Money Project

Timiraos on Supply-Side Disinflation

– November 24, 2023

“Slowing down total spending growth (current-dollar GDP) by hiking interest rates and shrinking the balance sheet clearly mattered. Supply-side improvements do too, but they’re likely playing the role of the sidekick rather than the hero.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

The Fed Delivered Disinflation

– November 16, 2023

“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~Alexander W. Salter

Central Banking, Monetary Policy, Sound Money Project

Dollarization Is A Cost-Effective Solution for Argentina

– November 11, 2023

“If Argentina lacks the resources for dollarization, it most certainly does not possess the means to rescue the peso. The alternative is to continue on the current course, and approach dollarization under circumstances akin to Zimbabwe.” ~Nicolas Cachanosky

Central Banking, Inflation, Monetary Policy, Sound Money Project

The FOMC Was Right to Not Hike

– November 7, 2023

“The best approach for the FOMC is to keep its rate target where it is. We should wait for additional inflation data in November before calling for even-tighter monetary policy.” ~Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Inflation Remains High in September

– November 3, 2023

“The Fed should keep monetary policy tight as inflation returns to its 2-percent target. But if it tightens too much, it will push the economy into an unnecessary and painful recession.” ~William J. Luther

Economic Trends, Monetary Policy, Sound Money Project

Alan Blinder: Let Them Eat Disinflation

– November 1, 2023

“Blinder thinks deflation always and everywhere causes economic harm. ‘It takes a truly sick economy to cause deflation,’ he warns. But he’s wrong.” ~Alexander W. Salter

Cryptocurrency, Monetary Policy, Sound Money Project

The IMF is Wrong – and Right – About Crypto

– November 1, 2023

“The IMF and FSB’s recommendations are transparently pro-government and anti-citizen. They overstate the potential harm of cryptocurrencies and propose monitoring systems that would benefit tyrannical governments at the expense of the public.” ~Thomas L. Hogan

Central Banking, Inflation, Monetary Policy, Sound Money Project

Rising Treasury Yields Can’t Substitute for Fed Rate Hikes

– October 28, 2023

“If the yield curve is the explanation, then market forces aren’t ‘substituting’ for Fed policy. They’re simply reflecting an economic transition from one microeconomic equilibrium in the market for loanable funds to another.” ~Alexander W. Salter

Inflation, Sound Money Project

Inflation Ticks Up Again. Keep an Eye on Oil

– October 18, 2023

“Major changes in oil prices seem likely to drive the near-term changes in CPI inflation, both headline inflation and possibly core as well. Another big question is how the Fed will respond.” ~Thomas L. Hogan