Central Banking
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The Fed Says Its Record Losses Don’t Matter
“While not a groundbreaking revelation for any central bank, the lack of concern about the economic and institutional implications of monetizing financial obligations is cause for concern.” ~Nicolas Cachanosky
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Profits Do Not Cause Inflation: Causal Fallacies as Economic Disinformation
“Fortunately, the idea that thousands of businesses have colluded to raise prices, boosting their profit margins and engineering the inflation that continues to afflict Americans, is easily disproven.” ~Peter C. Earle
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Can BRICS Displace the Dollar?
“The noise from BRICS about creating their own reserve currency and abandoning the dollar is little more than noise. As irresponsible as the Fed has been, BRICS policymakers apparently want to inflate faster than even the Fed will allow.” ~Robert F. Mulligan
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Happy New Year! Have Some Inflation
“After a rough couple of rounds, inflation has come out swinging. It doesn’t have the legs for a knockout punch, but it remains a troublesome opponent.” ~Alexander W. Salter
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Who’s Winning the Race for Real-Time Payments?
“The extent to which the Federal Reserve will take measures to hold back TCH-RTP’s growth was not yet clear (and maybe it still isn’t). Institutions may be hedging their bets or testing both systems.” ~Nicolás Cachanosky
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Dollarization Is Not Magic
“Rather than dismissing it as magic, one should recognize that dollarization is a pragmatic approach to restoring stability in high-inflation countries that lack credible institutions.” ~Nicolás Cachanosky
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Inflation Undershoots Fed Projections
“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther
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FOMC Holds Rates, Revises Projections
“After months of worrying that they had not yet done enough, FOMC members now seem to think they have a handle on inflation and will see it gradually return to 2 percent. Let’s hope they are correct.” ~William J. Luther
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Despite CPI Uptick, Monetary Policy Remains Tight
“The slight bump in inflation won’t spook them into going even tighter. And despite the cries from financial markets, it’s too early to contemplate cuts.” ~Alexander W. Salter
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Argentina’s New President Should Reframe Its Central Bank Even If He Later Proceeds To Eliminate It
“Establishing trustworthy monetary rules is needed to incentivize fiscal responsibility. Constructing robust institutions that allow monetary authorities to act within constraints is even more imperative.” ~Joaquín Henault
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•
The Fed Says Its Record Losses Don’t Matter
“While not a groundbreaking revelation for any central bank, the lack of concern about the economic and institutional implications of monetizing financial obligations is cause for concern.” ~Nicolas Cachanosky
-
•
Profits Do Not Cause Inflation: Causal Fallacies as Economic Disinformation
“Fortunately, the idea that thousands of businesses have colluded to raise prices, boosting their profit margins and engineering the inflation that continues to afflict Americans, is easily disproven.” ~Peter C. Earle
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•
Can BRICS Displace the Dollar?
“The noise from BRICS about creating their own reserve currency and abandoning the dollar is little more than noise. As irresponsible as the Fed has been, BRICS policymakers apparently want to inflate faster than even the Fed will allow.” ~Robert F. Mulligan
-
•
Happy New Year! Have Some Inflation
“After a rough couple of rounds, inflation has come out swinging. It doesn’t have the legs for a knockout punch, but it remains a troublesome opponent.” ~Alexander W. Salter
-
•
Who’s Winning the Race for Real-Time Payments?
“The extent to which the Federal Reserve will take measures to hold back TCH-RTP’s growth was not yet clear (and maybe it still isn’t). Institutions may be hedging their bets or testing both systems.” ~Nicolás Cachanosky
-
•
Dollarization Is Not Magic
“Rather than dismissing it as magic, one should recognize that dollarization is a pragmatic approach to restoring stability in high-inflation countries that lack credible institutions.” ~Nicolás Cachanosky
-
•
Inflation Undershoots Fed Projections
“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther
-
•
FOMC Holds Rates, Revises Projections
“After months of worrying that they had not yet done enough, FOMC members now seem to think they have a handle on inflation and will see it gradually return to 2 percent. Let’s hope they are correct.” ~William J. Luther
-
•
Despite CPI Uptick, Monetary Policy Remains Tight
“The slight bump in inflation won’t spook them into going even tighter. And despite the cries from financial markets, it’s too early to contemplate cuts.” ~Alexander W. Salter
-
•
Argentina’s New President Should Reframe Its Central Bank Even If He Later Proceeds To Eliminate It
“Establishing trustworthy monetary rules is needed to incentivize fiscal responsibility. Constructing robust institutions that allow monetary authorities to act within constraints is even more imperative.” ~Joaquín Henault