Alexander W. Salter
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Price Stability and Nominal GDP Targeting
“While we should not stubbornly insist on first-best policy if the second-best is all we can get, neither should we ignore the question of which policy is first-best. As long as we are reconsidering the Fed’s mandate, nominal GDP targeting should be on the table.” ~ Alexander William Salter
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Price Stability and the Fed
“Politics is compromise. Half a loaf is better than no loaf at all. Price stability is the half-loaf of monetary policy rules. It seems foolish to go hungry simply because haute cuisine is unaffordable.” ~ Alexander William Salter
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A Simple Guide for Aggregate Demand Management
“We’ve advanced little beyond the classical-liberal prescriptions of free markets, sound money, and peace. ‘Keep it simple, stupid,’ is good enough for government work.” ~ Alexander William Salter
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Inflation, Unemployment, and Fed Credibility
“Any time it looks like there’s a tradeoff between unemployment and inflation, something has gone very wrong. We could’ve avoided both horns of the dilemma if the Fed had done its job.” ~ Alexander William Salter
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We Still Need Milton Friedman
“Monetary policy should be about money—not specific markets, but their common denominator. The sooner we enlist Friedman to help ‘run the show,’ the faster we can clean up our economic messes.” ~ Alexander William Salter
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Putting “Money” Back in “Monetary Policy:” A Response to Dan McLaughlin
“The way we fix things is by carefully diagnosing demand-side and supply-side problems. When it comes to demand, we’re talking about central bank activity. Unfortunately, none of McLaughlin’s four points are in the ballpark.” ~ Alexander William Salter
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Money and the Rule of Law: Looking Back After a Year
“We face even more difficult challenges ahead. We who believe in good economics and prudent political economy have our work cut out for us if we want to bring the rule of law to central banking.” ~ Alexander William Salter
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Yes, Supply Problems Can Cause Inflation
“We use models, mathematical or otherwise, because they help us understand the real world. Let’s not define that world out of existence. Supply problems can, in fact, cause inflation.” ~ Alexander William Salter
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Lisa Cook is Unqualified for the Federal Reserve Board
“It’s time to end mandate drift once and for all. We need qualified nominees who understand the proper role of monetary policy. Unfortunately, Dr. Cook falls short on both counts.” ~ Alexander William Salter
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Mandate Drift at the Fed Is Par for the Course
“We must decide, so long as we have a central bank, what we want it to do. The best feasible reforms tighten the Fed’s leash. A constrained Fed is a competent Fed. A drifting Fed is a danger to the public.” ~ Alexander William Salter
