Topic: Sound Money Project

Without Rules, the Fed Rules

– September 12, 2023

“Committing to a rule significantly lowers the cost of evaluating Fed policy. And lowering the cost of evaluating Fed policy could make it very clear to a great many people that the Fed is up to no good.” ~ Alexander W. Salter

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Dollarization and the Lender of Last Resort

– September 11, 2023

“Typically, there is little risk of losing a lender of last resort in countries with troubled currencies that are considering dollarization because such countries don’t have a lender of last resort to lose.” ~ Nicolas Cachanosky

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What’s the Harm in Raising the Inflation Target?

– September 5, 2023

“In addition to increasing workers’ real tax burden, raising the inflation target reduces workers’ real wages by reducing the demand for their labor services.” ~ Bryan Cutsinger

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Monetary Policy Remains Sufficiently Tight

– September 4, 2023

“There’s no returning to the pre-pandemic trend for the price level. We’re left with permanently higher prices. Hopefully, the Fed continues to bring inflation down gradually.” ~ Alexander W. Salter

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Why Are Mortgage Rates So High?

– September 2, 2023

“Interest rates on mortgages were 2.66 percent just two and a half years ago. Why the sudden increase in rates? The Federal Reserve increased the money supply and generated the worst inflation in many years.” ~ Gerald P. Dwyer

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Against a 3 Percent Inflation Target

– September 1, 2023

“If the Fed can really make such an elementary error and get away with it, a major prudential reason for keeping it around would no longer hold.” ~ Alexander W. Salter

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Inflation is Back on Target

– August 31, 2023

“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther

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The Costly Late Arrival of FedNow

– August 29, 2023

“Policy makers should ensure that the US payment landscape is efficient, accessible, and beneficial for all stakeholders involved with as little government involvement as possible.” ~ Nicolas Cachanosky

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Whipped Inflation Now

– August 26, 2023

“The battle for 2 percent inflation has already been won. Fed officials should acknowledge and celebrate the victory.” ~ William J. Luther

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A Macroeconomic Agenda for Freedom Conservatives

– August 25, 2023

“It’s time to hit the brakes on modern monetary theory, functional finance, and anything else that justifies using the federal budget as an instrument of social control.” ~ Alexander W. Salter

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Alan Blinder’s Inflationary Incoherence

– August 16, 2023

“There’s nothing wrong with making incorrect predictions. It happens to all of us. There is something wrong with obstinacy in the face of overwhelming contradictory evidence..” ~ Alexander W. Salter

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John Cochrane Offers Incomplete Explanation of Inflation

– August 9, 2023

“His analysis implies the Fed could buy every financial asset in the world without causing inflation.” ~ Alexander W. Salter

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