Alexander W. Salter
Judy Shelton Is Right: The Fed Is Lawless
Judy Shelton, President Trump’s nominee to the Federal Reserve board, got little love in her pre–Valentine’s Day confirmation hearing. (Shelton was previously the director of the Sound Money Project, prior […]
The Stakes of Politics are Far Too High
Despite the comedy of errors that was the Iowa Democratic Caucus, not to mention the ambiguity of New Hampshire, the national fervor grows. Bernie Sanders’ strong performance makes him the […]
Macroeconomic Inferences and the New Fed Regime
Under what conditions can we make valid inferences about the state of the economy from macroeconomic data? As it turns out, this seemingly unproblematic procedure becomes difficult when policy makers […]
What Is the Relationship Between Monetary Policy and Fiscal Policy?
Hydraulic Keynesianism is now usually found in the comparatively unsophisticated realm of the popular press.
Monetary Policy: Seeing Like a State
If monetary policymakers actually wish to contribute to the public welfare, they need to stop seeing like a state.
Federal Reserve’s “Independence” Masquerade
Chairman Powell’s ideal operating environment most likely looks the same as every other Fed chair’s operating environment: one where the Fed is left alone to treat the economy like a Lego set.
To Whom Is the Fed Accountable?
We do not want elected officials to police the monetary policy makers. But monetary policy makers have clearly demonstrated that they are incapable of policing themselves.
Fiscal Profligacy: A Failure of Congress and the People
Almost everybody likes receiving services from the government. Almost nobody likes paying for them.
Monetary Policy and Constrained Discretion
The problem with constrained discretion is that it leaves up to central bankers the decision when to switch from rule-like behavior to discretionary behavior.
Monetary Policy Rules Are Not Enough
A monetary rule would provide guidance and stability. But monetary rules are not incentive-compatible for monetary policy makers.
