Bryan Cutsinger
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Rethinking the Fed’s Framework: Lessons from the Post-Pandemic Inflation
The paper evaluates alternative frameworks and argues that the Fed should adopt either a nominal spending target or a symmetrical average inflation target.
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Powell’s Revisionist History of Inflation Targeting
At a recent press conference, Federal Reserve Chair Jerome Powell claimed that the Fed’s flexible average inflation targeting (FAIT) framework did not contribute to the post-pandemic inflation surge. There was […]
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Don’t Expand Deposit Insurance. Abolish It!
“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
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Monetary Policy and that Old-Time Fiscal Religion
“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
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Understanding Inflationary Finance
“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
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The Tragedy of the Monetary Commons
“While relatively well-functioning governments have managed to find mechanisms that mitigate the problem, it seems unlikely that Argentina and Brazil will be able to prevent a tragedy of the monetary commons given their history of money and fiscal mischief.” ~ Bryan Cutsinger
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Does Government Spending Lead to Inflation?
“The key point is that it is the central bank’s willingness to help finance government spending, not the spending itself, that drives inflation. In short: inflation remains a monetary phenomenon.” ~ Bryan Cutsinger
