Inflation
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Financial Stability and the Fed
“The Fed failed at its initial task of promoting financial stability. It has failed at conducting monetary policy as well. Given the Fed’s major financial-policy and monetary-policy errors since 2008, we should explore major structural changes.” ~ Alexander William Salter
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Five Questions for Fed Chair Jerome Powell
“After each meeting, Chair Powell holds a press conference where he takes questions from the media. Most reporters ask about the state of inflation or the Fed’s interest rate decisions, while important policy questions go unasked.” ~ Thomas L. Hogan
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How to Make Disinflation Less Scary
“Economists are correct in warning the public about the likely costs of disinflation. But leaders within and outside the Fed should not sit back and take these costs as given.” ~ Peter N. Ireland
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Can Congress Rein in the Fed?
“As long as we’re stuck with a central bank, we should give it an unambiguous mandate and watch it like a hawk. Monetary policymakers answer to the people’s representatives, in Congress assembled. Let’s remind them.” ~ Alexander William Salter
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No, Hyperinflation Is Not Right Around the Corner
“The pursuit of sound money is more profitably directed at identifying profligate monetary policy measures, rather than the consequenceless prediction of extraordinary, and extraordinarily unlikely, outcomes.” ~ Peter C. Earle
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Welcome to Joe Biden’s Low Growth Economy
“If Biden truly wants to cement his legacy and restore American dominance, he will have to get out of the way and let individual drive and creativity flourish without the burden of high-handed officials obstructing the path to a more prosperous future.” ~ Michael N. Peterson
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The Inflation Tide Appears To Be Turning
“If monthly core inflation rates are at or below 0.2 percent in August and September, we might more confidently conclude that the Fed is back on track. Until then, we can only hope for the best.” ~ William J. Luther
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There Is No Such Thing As Wage-Driven Inflation
“Friedman’s pouncing on Heller has, unfortunately, had no effect on American journalists. News shows and economic commentators still repeat variants of the claim made by Heller: Rising wages will contribute to inflation.” ~ Vincent Geloso
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Why Will Inflation Remain So High For So Long?
“I cannot think of a good reason for inflation to remain high through 2024; but many bad reasons come to mind. The most likely explanation, in my opinion, is that Fed officials do not take their average inflation target very seriously.” ~ William J. Luther
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The Fed Needs a Single Mandate
“A purchasing target would direct the Fed towards an achievable goal that would improve American households’ material wellbeing. Legislators from both parties should make a single Fed mandate a key part of their agendas.” ~ Thomas L. Hogan & Alexander William Salter
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No, This Is Not 1970s Style Stagflation
“The FOMC’s current policy stance has precipitated a recession that may modestly deepen as it tardily-but-effectively pursues its commitment to restraining inflation.” ~ James L. Caton
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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
