Governor DeSantis recently took aim at the Federal Reserve, presumably to bolster his national-issues profile ahead of announcing a run for the presidency, which he is expected to do in […]
Tag: Central Banking
Interest Rates, the Money Supply, and Say’s Law
Andy Kessler at the Wall Street Journal wrote an interesting column about the perils of stimulating demand in a supply-constrained environment. He argues, correctly, that expansionary monetary policy is more […]
The Fed Is Bankrupt
Federal Reserve Chair Jerome Powell recently testified before Congress on the current state of the US economy. In addition to monetary policy, Powell was questioned about the Fed’s regulatory proposals […]
A CBDC Would Not Be Money in the Sense Used in the Constitution
The latest fad in monetary policy circles worldwide is CBDC or Central Bank Digital Currency, a government-created cryptocurrency exchanged on a blockchain. Many fear that it would give governments complete […]
Have We Crested the Inflation Wave?
Finally, some welcome news on the inflation front: Core PCEPI inflation is down to 4.6 percent year-over-year, and 0.3 percent month-over-month, which is 3.6 percent annualized. PCEPI growth has fallen […]
The Fed Isn’t Powerless
In a recent article at Axios, Neil Irwin asks why interest rate increases haven’t tamed inflation. Inflation remains high despite eight rate-hikes by the Fed over the past year. The […]
Does the Fed Control Interest Rates?
An interest rate is a price: the price of rented capital. Alternatively, interest is the price of time. It’s the cost borrowers pay to transfer purchasing power from their future […]
Does Government Spending Lead to Inflation?
Polling data suggests that many Americans see government spending as one of the primary drivers of inflation. Economic theory, however, tells us that the relationship between the two phenomena is […]
Supply, Demand, and Inflation: The Big Picture
Thankfully, inflation is slowing down. Prices rose only 0.1 percent in November, yielding the lowest annualized inflation rate (7.1 percent) in a year. Core inflation, which excludes volatile food and […]
CBDC in the USA: Not Now, Not Ever
Kevin Warsh, a former member of the Fed’s Board of Governors, writes in defense of a central bank digital currency (CBDC) in the Wall Street Journal. Mr. Warsh believes we […]