Central Banking
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Despite Tariffs, Inflation Remained Low in May
The best the Fed can do (whether or not tariff shocks appear) is keep nominal spending on a stable trajectory.
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Trump v Powell: The Credibility Cost of Politicized Monetary Policy
Politicians might prefer lower interest rates, but the Fed must protect its fragile post-pandemic progress on prices. Credibility is hard earned and easily lost.
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Central Bank Independence: More Heat than Light
Is central bank independence practical or even desirable? A new AIER Explainer considers the legal and constitutional standing of the Federal Reserve.
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Is the GENIUS Act Creating a Shadow CBDC System?
Allegedly designed to regulate stablecoins, the bill quietly allows for a de facto retail CBDC system — one implemented not by the Federal Reserve, but by the commercial banks it closely supervises.
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Should Economists Rule the World?
Mark Carney, an economist who served as the central banker of two G7 countries, is now the prime minister of Canada.
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Dollar’s Decline Meets Rising Dedollarization: The Threat Comes from Within
The Bloomberg Dollar Index has fallen nearly 8.5 percent, its steepest drop since the 1980s. Elsewhere, incremental signs point to emerging alternatives.
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Fed Holds Rates Steady Amid Economic Uncertainty
The Federal Reserve board isn’t committing to rate cuts, voting to holding its policy interest rate at 4.25 to 4.5 percent. As inflation and employment trends stabilize, caution is warranted.
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•
Waller Isn’t Flinching at Tariff Inflation — Here’s Why
Many at the Fed believe once tariffs raise the price floor, inflation will return to trend, but unemployment and consumer projections vary.
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How Interest Rates Set Asset Prices: One Weird Trick
A low funds rate artificially inflated asset values for much of the past 30 years. Zombie industries are now addicted to cheap borrowing.
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Central Banks Forgot What Drives Inflation —Tim Congdon Didn’t
Tim Congdon’s ‘The Quantity Theory of Money: A New Restatement’ is a crucial contribution to economic thought.
-
•
Despite Tariffs, Inflation Remained Low in May
The best the Fed can do (whether or not tariff shocks appear) is keep nominal spending on a stable trajectory.
-
•
Trump v Powell: The Credibility Cost of Politicized Monetary Policy
Politicians might prefer lower interest rates, but the Fed must protect its fragile post-pandemic progress on prices. Credibility is hard earned and easily lost.
-
•
Central Bank Independence: More Heat than Light
Is central bank independence practical or even desirable? A new AIER Explainer considers the legal and constitutional standing of the Federal Reserve.
-
•
Is the GENIUS Act Creating a Shadow CBDC System?
Allegedly designed to regulate stablecoins, the bill quietly allows for a de facto retail CBDC system — one implemented not by the Federal Reserve, but by the commercial banks it closely supervises.
-
•
Should Economists Rule the World?
Mark Carney, an economist who served as the central banker of two G7 countries, is now the prime minister of Canada.
-
•
Dollar’s Decline Meets Rising Dedollarization: The Threat Comes from Within
The Bloomberg Dollar Index has fallen nearly 8.5 percent, its steepest drop since the 1980s. Elsewhere, incremental signs point to emerging alternatives.
-
•
Fed Holds Rates Steady Amid Economic Uncertainty
The Federal Reserve board isn’t committing to rate cuts, voting to holding its policy interest rate at 4.25 to 4.5 percent. As inflation and employment trends stabilize, caution is warranted.
-
•
Waller Isn’t Flinching at Tariff Inflation — Here’s Why
Many at the Fed believe once tariffs raise the price floor, inflation will return to trend, but unemployment and consumer projections vary.
-
•
How Interest Rates Set Asset Prices: One Weird Trick
A low funds rate artificially inflated asset values for much of the past 30 years. Zombie industries are now addicted to cheap borrowing.
-
•
Central Banks Forgot What Drives Inflation —Tim Congdon Didn’t
Tim Congdon’s ‘The Quantity Theory of Money: A New Restatement’ is a crucial contribution to economic thought.