Crisis
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Fiscal Policy and Inflation
“When it comes to fiscal policy, we’re off the edge of the map. The typical stories told by unreconstructed Keynesians are clearly wrong. But that doesn’t mean we never need to worry about fiscal inflation.” ~ Alexander W. Salter
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What Did the Fed Know in the Great Recession?
“The Fed’s poor forecasting record should make us skeptical of its ability to effectively manage the money supply in times of economic turmoil. It would be prudent to consider structural reforms that might improve FOMC’s decision-making process.” ~ Thomas L. Hogan
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Price Controls?!
“Price controls are a bad idea. But support for them appears to be growing. They are a terrible tool for dealing with inflation. They make no effort to reduce nominal spending. And they exacerbate supply constraints.” ~ William J. Luther
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How to Compete with the Chinese
“Will the search for technological supremacy lead us to embrace China’s vision of governance by a technologically sophisticated bureaucracy, and what does that mean for individual rights and dignity?” ~ Todd Myers
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Fed Officials Think Inflation Should Remain High Through 2024
“It seems the Fed is not committed to hitting its average inflation target. Inflation will be transitory in the sense that the rate will eventually return to 2 percent. But the price level will likely remain elevated.” ~ William J. Luther
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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
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Will the Fed Do Enough to Bring Down Inflation?
“The Fed must act boldly and swiftly to course correct. Otherwise, inflation expectations could become unanchored––leaving the Fed to choose between restoring its credibility by engineering a recession or tolerating high inflation in perpetuity.” ~ William J. Luther
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Crowding Out Under Quantitative Easing
“The data speaks loudly. An accommodative monetary policy has failed to facilitate a robust economic recovery. And an artificially low federal funds rate is pumping up the federal debt and weighing on private investment.” ~ James L. Caton
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The Great Inflation Debate Is Missing Why Inflation Matters
“The public debate over inflation is a great opportunity to focus on what really matters: subjecting monetary policymakers to the rule of law. Unfortunately, we’re currently squandering that opportunity to repeat pop-macroeconomic fallacies.” ~ Alexander W. Salter
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Only Ending Lockdowns Can Stimulate the Economy
“Regardless of what one believes about the health costs or benefits of lockdowns, preventing businesses from operating is clearly bad for the economy. Fiscal spending and monetary expansion cannot improve matters while these restrictions remain in place.” ~ Thomas L. Hogan
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Politicians Turn Problems Into Power
“Politicians make grandiose claims about their various and sundry programs because those claims resonate with the people who receive government largesse. In the end, people receive pennies on the dollar compared to what they could have received had we decided just to write a check. Our government has become a tool that politicians use to…
