Nicolás Cachanosky
Do Greedy Countries Have Higher Inflation?
“Blaming big corporations for inflation no doubt serves the political interests of Sens. Warren and Sanders. But it is inconsistent with the available data. That is not surprising: It is inconsistent with standard monetary economics as well.” ~ Nicolás Cachanosky
What Can the US Learn from Argentina’s Inflation?
“We can learn by looking at countries that have employed these strategies before. Inflation in the U.S. has been modest by Argentine standards. To keep it that way, the US must avoid repeating Argentina’s mistakes.” ~ Nicolás Cachanosky
How Much Can the Supply Chain Explain the Rise of Inflation?
“Once we move from the realm of small price level movements to a more permanent and higher inflation rate scenario, it is more likely that the source of the rise in the price level is on the monetary side—even if the government doesn’t want to admit it.” ~ Nicolás Cachanosky
Cryptocurrencies and the National Bank Act: Learning the Wrong Lessons from History
“Perhaps the cryptocurrency market would benefit from regulatory oversight. But the regulators are certainly wrong to base their case on the historical experience of the US. The lesson they should learn from history is that regulation can be detrimental.” ~ Nicolás Cachanosky & William J. Luther
Permanent or Transitory Inflation: An Analytical Framework
“Inflation is not a high price level; it is a persistent increase in the price level. Whether inflation persists depends on what Fed officials do next.” ~ Nicolás Cachanosky
Understanding The Rise In Inflation Expectations
“Bond markets are currently pricing in a little more than two percent inflation on average over the next ten years, which suggests inflation will pick up. So far, Fed officials seem willing to permit inflation to run a bit high over the next decade. Whether they will remain so permissive when the inflation numbers start…
How Will We Pay for a $1.9 Trillion Spending Bill?
“Politicians are quick to ignore the costs of government spending in proposing legislation and obscure those costs by issuing debt rather than raising revenues. It is politically popular to issue debt and send checks to everyone. The benefits of the policy are clear: people get checks. The costs, which ripple out through financial markets as…
Galbraith Offers a Poor Defense of MMT
“The rise of MMT on the political left will no doubt continue. It is politically expedient. It provides a justification for spending. Political expediency does not imply theoretical soundness, however. And defenses along the lines offered by Galbraith do little to assuage very real concerns.” ~ Nicolás Cachanosky
Sovereign Debt After Covid-19: The Wrong View
“Like many others, I am concerned about the sovereign debt market in the wake of Covid-19. But providing more funds to governments committed to maintaining an unsustainable course is not a solution. These countries need serious institutional reforms.” ~ Nicolás Cachanosky
FedCoin Revisited
“We don’t know whether the Fed would take steps to eliminate cash or impose negative rates on FedCoin balances. We don’t know how it would go about intermediating funds. But such speculations should make one thing clear: there are risks. At the least, we should develop strong institutional checks before permitting the Fed to plow…
