Monetary Economics

Nicolás Cachanosky

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8/28/21

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
James L. Caton

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8/27/21

How Does the Federal Reserve Evaluate Policy?

“If inflation does not relent in approaching months, this call for a modest tightening will likely develop support from other ranking members of the Fed. I’m willing to bet that support for tightening will be strongly correlated with the value of the loss function presented here.” ~ James L. Caton
Alexander W. Salter

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8/26/21

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
AIER

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8/17/21

Is Inflation Back?

Gold will return to monetary preeminence not because it can or should, but because it must. Nixon’s temporary suspension will be exactly that; not because he said so, but rather because at some point there will be no other road forward.
Lawrence H. White

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8/14/21

The End of Bretton Woods, Jacques Rueff, and the “Monetary Sin of the West”

“As its contemporary critics understood, Bretton Woods was doomed to fail if it could not be fundamentally reformed. One of its chief contemporary critics was the French economist, Jacques Rueff.” ~ Lawrence H. White
Gerald P. Dwyer

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8/6/21

How High Will Inflation Be in 2021?

“Inflation will be noticeably higher in 2021 than it has been in some time. An important question is whether it will be followed by the widely predicted lower inflation or by higher inflation in subsequent years.” ~ Gerald P. Dwyer
Alexander W. Salter

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7/29/21

Is Inflation Really a Problem?

“Inflation has real costs when it’s unpredictable. We want monetary institutions to keep generalized price increases on a steady, anticipable path. Since central banks often go out of their way not to be understood, we might have a valid complaint against them after all.” ~ Alexander W. Salter
William J. Luther

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7/25/21

Is Inflation Merely Catching Up?

“The price level today is greater than what it was expected to be in the absence of a pandemic and what the Fed implicitly said it would be given its two-percent inflation target. The price level has more than caught up with expectations. The question, now, is whether it will continue to grow so rapidly,…
William J. Luther

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7/23/21

Will Cash Soon Be Obsolete?

“Perhaps these trends will reverse. But it seems more likely that the reports of the forthcoming death of cash have been greatly exaggerated––that is, so long as the government doesn’t kill it.” ~ William J. Luther
Gerald P. Dwyer

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7/22/21

What Do Wildcat Banks Tell Us About Stablecoins?

“The experience in Michigan when it was a frontier state in the same year that the telegraph was invented is not particularly pertinent for discerning the likely success of private currency with the communications technology available today. ‘Wildcat’ is a phrase that has no relevance for stablecoins.” ~ Gerald P Dwyer