Topic: Sound Money Project

Central Banking, Monetary Policy, Sound Money Project

The Federal Reserve’s Quasi-Fiscal Deficit

– August 6, 2023

“Although realizing losses—or, running quasi-fiscal deficits—is new to the Fed, it is more common in developing countries. The consequences of running quasi-fiscal deficits include inflation and lack of central bank credibility.” ~ Nicolas Cachanosky

Central Banking, Monetary Policy, Sound Money Project

Waller Explains Why the Fed is Still Raising Rates

– August 6, 2023

“While Waller sees the recent slowdown in inflation as positive, he is not ready to declare victory as it is only a single data point.” ~ Bryan P. Cutsinger

Central Banking, Inflation, Sound Money Project

The Fed Hits 3,000 Percent Inflation

– August 3, 2023

“US inflation was not always as persistently high as it has been under the Fed. Before the Fed, the purchasing power of the dollar was determined by supply of and demand for gold.” ~ Thomas L. Hogan

Central Banking, Inflation, Monetary Policy, Sound Money Project

Disinflation good, Fed bad

– August 2, 2023

“There’s no way for non-market actors to direct credit more reliably than market actors. The discipline of profit and loss is essential.” ~ Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

Will Lower Inflation Halt Rate Hikes?

– July 29, 2023

“No matter how you slice it, real rates look sufficiently restrictive to bring down inflation. Indeed, they may be overly restrictive at this stage in the tightening cycle.” ~ William J. Luther

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

Central Bankers, Let the Price System Work!

– July 26, 2023

“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter

Inflation, Monetary Policy, Sound Money Project

Does Greedflation Fit the Facts?

– July 25, 2023

“While an increase in market power would certainly affect real income growth, the magnitude necessary to explain inflation is implausibly large.” ~ Bryan Cutsinger

Central Banking, Inflation, Sound Money, Sound Money Project

Inflation is Slowing. Will the Fed?

– July 2, 2023

“Monetary policy works with long and variable lags. Inflation is slowing, but it will take some time to come down. Fed officials should not be too concerned about elevated core inflation.” ~ William J. Luther

Inflation, Sound Money Project, Unemployment

In Search of a Monetary Standard: A Review of Robert Hetzel’s The Federal Reserve: A New History

– June 28, 2023

“The price system worked exceptionally well precisely because the Fed had successfully established a credible nominal anchor. As a result, the economy could sustain a historically low unemployment rate.” ~ Bryan P. Cutsinger

Central Banking, Currency, Sound Money Project

What Should The Fed Do When It Hasn’t Done What It Should’ve Done?

– June 17, 2023

“We are likely at the point where the risk of doing too much exceeds the risk of doing too little. It makes sense for the Fed to hold for now, and see how the incoming data looks over the next few months.” ~ William J. Luther

Currency, Monetary Policy, Sound Money Project

Are GOP Presidential Contenders Prepared to Take On the Fed?

– June 5, 2023

“There’s no time to lose. Aspiring Republicans must get serious about fixing the Fed.” ~ Alexander W. Salter

Central Banking, Economic Growth, Sound Money Project

Two Cheers for Gramm and Solon

– May 31, 2023

“Excessive government spending makes us less productive than we otherwise would be, resulting in a permanently lower level of employment and output.” ~ Alexander W. Salter