“We cannot just look at the Fed’s target rate to determine whether it is manipulating the market. We must consider its target rate relative to the natural rate.” ~Bryan Cutsinger
“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
“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
“While an increase in market power would certainly affect real income growth, the magnitude necessary to explain inflation is implausibly large.” ~ Bryan Cutsinger
“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
“Climate-related innovation does not seem to pose a unique risk to the financial system. And lenders have a long history of adapting to technological innovation.” ~ Bryan Cutsinger
“In principle, the Fed has the ability to provide liquidity to the banking system while simultaneously reducing the incentives banks have to make loans.” ~ Bryan Cutsinger
“Deposit insurance creates perverse incentives that weaken market discipline and encourage excessive risk-taking. Expanding deposit insurance will only make these problems worse.” ~ Bryan P. Cutsinger
“Nominal income targeting can potentially restore the old-time fiscal religion. Like the classical gold standard, this approach stabilizes total spending in the economy, rendering counter-cyclical fiscal policy unnecessary and ineffective.” ~ Bryan P. Cutsinger & Louis Rouanet
“Providing revenue to the state is one of the reasons (and, perhaps the primary reason) governments worldwide monopolize the issuance of high-powered money.” ~ Bryan Cutsinger