Monetary Policy
|
FOMC Ratchets Up Inflation Projection
“FOMC member projections suggest that inflation will come down only gradually over the next two to three years and that the price level will remain permanently elevated.” ~ William J. Luther
|
Putting Aggregate Demand and Aggregate Supply to Work
“Economists use aggregate demand and aggregate supply (AS-AD model) to understand how inflation and real income growth are jointly determined.” ~ Bryan Cutsinger & Alexander William Salter
|
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
|
Does the Fed Control Interest Rates?
“The Fed is a failed institution in need of major reforms. But we won’t make the right changes if we don’t understand the basic relationship between central banks and capital markets.” ~ Alexander William Salter
|
Supply, Demand, and Inflation: The Big Picture
“Where did all this inflation come from? Supply-side issues are a problem, but in terms of magnitudes, it just doesn’t make sense to call them the chief contributor.” ~ Alexander William Salter
|
Fed Slows Pace of Rate Hikes
“The decision FOMC members make in February will depend on the inflation data released between now and then—and how Fed officials interpret that data.” ~ William J. Luther
|
After Three Holiday Seasons, Pandemic Monetary Policy Still Driving up Prices
“The HDAY Index and TDAY Index lead to the same irrefutable conclusion: the ongoing cost of policies implemented to mitigate the spread of COVID are large and, almost three years later, proving disconcertingly persistent.” ~ Peter C. Earle
|
The Federal Reserve’s Expanding Mandate (Video)
“In this video, Kate Wand sat down with AIER Senior Research Faculty Thomas Hogan to discuss the Federal Reserve’s expanding objectives and how they affect its ability to conduct monetary policy.” ~ AIER
|
Ocean Shipping’s Effect on Inflation was Negligible
“High shipping prices have had a provably inconsequential effect on the general price level over the past two years. Expansionary monetary policies remain the prime culprit for the high prices and other economic distortions that persist in the US economy.” ~ Peter C. Earle
|
Congress Can Restore the Integrity of the Dollar
“The historical record is clear: Gold-backed money is fully capable of delivering short-run stability and long-run prosperity. The Fed can’t.” ~ David Brat & Alexander William Salter
|
Aggregate Demand and Aggregate Supply: Keep It Simple, Stupid!
“This simple model is a good first approximation to aggregate economic performance. Economists know this. Unfortunately, they sometimes ignore it for partisan reasons.” ~ Alexander William Salter
|
To Temper the Effects of Monetary Restraint, We Need Pro-Growth Fiscal Policy
“To temper the effects of monetary tightening, avoid a prolonged recession, and ultimately ignite economic prosperity, we need an executive and Congress willing to pursue pro-growth fiscal policy. ” ~ Kat Dwyer
