Monetary Economics

Alex J. Pollock

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8/20/24

The Permanent Temptation of All Governments

“The math of 2 percent compound shrinkage demonstrates that the Fed wants to depreciate the dollar’s purchasing power by 80 percent in each average lifetime. Somehow the Fed never mentions this.” ~Alex Pollock
Paul Mueller

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8/16/24

The Federal Reserve and Pandora’s Box

“In the name of preventing a second Great Depression, then-Fed Chairman Ben Bernanke opened a Pandora’s Box of monetary ills in 2008. And like the Greek myth, there may be no way of putting these ills back in the box.” ~Paul Mueller
Thomas Savidge

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8/15/24

Understanding Public Debt

Whether at the federal, state, or local level of government, the rate of growth of government debt is unsustainable. Fortunately, solutions are available for all levels of government.
Alexander W. Salter

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8/14/24

Moderate Inflation Returns in July

“To judge whether monetary policy is loose, it is not enough to show that monetary aggregates are growing at historically low rates. What matters is whether the money supply is growing faster than money demand.” ~Alexander W. Salter
Alexander W. Salter

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8/7/24

There’s Nothing Conservative about Deficits and Debt

“Interest payments now suck up more of the federal budget, leaving less to spend on important political priorities. Since Republicans and Democrats disagree about what those priorities are, the resulting fiscal strain amplifies partisan divisions.” ~Alexander W. Salter
William J. Luther

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8/1/24

Should the Fed Get Credit for Lower Inflation?

“Labor market developments cannot explain the decline in nominal spending growth. Tighter monetary policy can… Given the lags of monetary policy, the Fed may have already undershot its target.” ~William J. Luther
Nicolás Cachanosky

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7/19/24

Milei’s New Monetary Regime for Argentina

“Despite its controversial nature, full dollarization remains the monetary regime with the most potential for long-term stability in Argentina. It offers a credible pathway to restore confidence and put the country back on a sustainable economic trajectory.” ~Nicolás Cachanosky
Nicolás Cachanosky

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7/19/24

Milei’s New Monetary Regime for Argentina

“Despite its controversial nature, full dollarization remains the monetary regime with the most potential for long-term stability in Argentina. It offers a credible pathway to restore confidence and put the country back on a sustainable economic trajectory.” ~Nicolás Cachanosky
Alexander W. Salter

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7/12/24

Consumer Prices Decline in June

“Interest rates tell us monetary policy is very tight. The money supply tells us monetary policy is somewhat tight. Will the Fed interpret recent data as a signal it’s time to pivot?” ~Alexander W. Salter
Gerald P. Dwyer

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7/12/24

Mortgage Rates Are Likely To Decline In the Near Future

“Not that long ago, the real rate on Treasury bills was negative. The real rate on Treasury securities is temporarily high due to the Federal Reserve’s policy goal of lowering the inflation rate.” ~Gerald P. Dwyer