Monetary Economics

William J. Luther

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6/1/24

Inflation Continued to Decline in April

“While inflation is declining once more, members of the Federal Open Market Committee (FOMC) have suggested rates would need to remain high for longer than they had previously projected.” ~William J. Luther
Thomas Savidge

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5/30/24

Why Does the Federal Government Borrow?

“Policymakers have an incentive to finance spending with money printing and debt to hide the cost of spending from taxpayers. These costs cannot be hidden forever, though.” ~Thomas Savidge
Peter C. Earle

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5/24/24

Inflation to the Nines

“Americans will have to decide for themselves if the claim made by Biden was a lie intended to mislead anyone not familiar with the trajectory of prices over the past several years, or an innocent error.” ~Peter C. Earle
Gerald P. Dwyer

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5/22/24

The Demise of the Dual Banking System

“The issue comes down to whether a state-chartered bank that fulfills the legal requirements for a master account can be denied one by the Federal Reserve.” ~Gerald P. Dwyer
Alexander William Salter

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5/16/24

April’s Disinflation Delivery

“In the first quarter of 2024, the US economy expanded at a rate of 1.6 percent per year. That’s hardly an impressive growth rate, but it’s significantly faster than money supply growth. Money looks somewhat tight.” ~Alexander W. Salter
Bryan Cutsinger

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5/15/24

Is The Fed Manipulating the Market?

“We cannot just look at the Fed’s target rate to determine whether it is manipulating the market. We must consider its target rate relative to the natural rate.” ~Bryan Cutsinger
Judy Shelton

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5/7/24

Getting Monetary Policy Back on Track

“Experts seemingly identify much more closely with the central bankers — the practitioners of monetary policy — than with those forced to contend with the negative consequences of bad decisions.” ~Judy Shelton
Paul Mueller

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5/3/24

The Ratchet Effect on the Fed’s Balance Sheet

“The ratchet effect has locked us in a world with a massive Fed balance sheet — and the insidious problems of runaway deficit spending and easy bailout monetary expansion that come with it.” ~ Paul Mueller
William J. Luther

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4/26/24

Inflation Declined in March, But Remains High

“Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther
Nicolás Cachanosky

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4/26/24

Is Argentine Disinflation Sustainable?

“Milei’s lack of political support in Congress adds to the uncertainty surrounding his ability to successfully pass deregulatory reforms… it is premature to declare victory on the fiscal and inflationary fronts in Argentina.” ~Nicolás Cachanosky