Topic: 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

Fiscal Policy, Monetary Policy, Sound Money Project, Taxation

Forced Reconversion to that “Old-Time Fiscal Religion”

– October 17, 2023

“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Steady As She Goes

– October 14, 2023

“But even if new PCE figures confirm a bump in the disinflationary road, it’s still likely best for the FOMC to hold off on further rate hikes.” ~Alexander W. Salter

Central Banking, Economic Growth, Inflation, Monetary Policy, Sound Money Project

Inflationary Growth is Fake News

– October 4, 2023

“Economic growth means more output. Comparatively less money chases comparatively more goods. All else equal, prices across the economy should fall.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

Inflation was Worse than We Thought

– September 30, 2023

“Although Fed officials were late to tighten monetary policy, their efforts over the last year appear to have worked. The risk today is that monetary policy is too tight—and will remain so for too long.” ~William J. Luther

Central Banking, Currency, International, Monetary Policy, Sound Money Project

How Crazy Do You Have to Be to Support Dollarization?

– September 28, 2023

“The whole reason why it is an advantage for a developing country to tie to a major country is that historically speaking the internal policies of developing countries have been very bad. US policy has been bad, but their policies have been far worse.” ~Nicolás Cachanosky

Economic Growth, Free Trade, Sound Money Project, Taxation

Wishful (Protectionist) Thinking

– September 28, 2023

“Specialization and productivity increase when the market’s size extends across national borders. But tariffs reduce the extent of the market and thereby reduce specialization.” ~Paul Mueller

Central Banking, Inflation, Monetary Policy, Sound Money Project

What Should the Federal Reserve Do Now?

– September 26, 2023

“Inflation is running above 2 percent by any measure, and a current temporarily higher rate on short-term securities can reassure markets that the Federal Reserve is aiming at a lower inflation rate.” ~Gerald P. Dwyer

Central Banking, Inflation, Monetary Policy, Sound Money Project

Another Rate Hike? Let’s Not

– September 26, 2023

“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

Fed Continues to Signal Another Rate Hike

– September 20, 2023

“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther

Central Banking, Inflation, Monetary Policy, Sound Money Project

Don’t Panic over the Latest Inflation Numbers

– September 14, 2023

“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter

Central Banking, Monetary Policy, 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