Monetary Economics
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Inflated Worries: Don’t Sweat June’s Hot Prices
June’s inflation is a seasonal housing spike in disguise. Data suggest monetary policy is slightly tight.
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The Penny Problem Has a Third Option: Buy Them Back (With Interest)
The Fed could buy back 114 billion pennies already floating around in drawers and couch cushions across America — and for a fraction of the cost of making new ones.
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How Should Fed Officials Think About the Dual Mandate?
The Fed is tasked with both price stability and maximum employment. But any significant shift in one may create steep costs in the other.
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But Lagarde, Europe Is a Museum!
A shift of foreign investments from dollars to euros would only make inflation and confiscation risks worse.
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There’s a New Sheriff at the Fed
Michelle Bowman’s remarks offer a clear vision for a more focused, flexible, and transparent regulatory regime. It’s a welcome recalibration.
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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.
-
•
Inflated Worries: Don’t Sweat June’s Hot Prices
June’s inflation is a seasonal housing spike in disguise. Data suggest monetary policy is slightly tight.
-
•
The Penny Problem Has a Third Option: Buy Them Back (With Interest)
The Fed could buy back 114 billion pennies already floating around in drawers and couch cushions across America — and for a fraction of the cost of making new ones.
-
•
How Should Fed Officials Think About the Dual Mandate?
The Fed is tasked with both price stability and maximum employment. But any significant shift in one may create steep costs in the other.
-
•
But Lagarde, Europe Is a Museum!
A shift of foreign investments from dollars to euros would only make inflation and confiscation risks worse.
-
•
There’s a New Sheriff at the Fed
Michelle Bowman’s remarks offer a clear vision for a more focused, flexible, and transparent regulatory regime. It’s a welcome recalibration.
-
•
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.