Monetary Economics
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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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Lessons from Argentina’s Dollarization Debate: The Challenge of the Commitment Device
“If a large country like Argentina were to fare better under dollarization, economists would be forced to reconsider the role of central banks in monetary theory.” ~Nicolas Cachanosky
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The West Should Strengthen Ties with Argentina’s New President Javier Milei
Argentina just elected Javier Milei, a boisterous, wild-haired economist with a pro-market agenda to transform the nation’s economy. After decades of Peronist rule, Argentina is now home to the first libertarian head of state in modern history, a feat that many in the media seem to miss. Even before the official results were announced, voters…
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Argentina’s Rampant Inflation, Explained (in One Chart)
“Whichever definition one prefers to use — an expansion of the money supply which leads to price increases, or a broad and sustained increase in consumer prices — inflation is caused by the governments and central banks who control the money supply.” ~Jon Miltimore
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Politicians Talk; Entrepreneurs and Scientists Do
“The worse the inability to get universal political agreement becomes, the better and more cost-efficient become the small-scale, positive-externality, science-based attempts at just doing the work.” ~Joakim Book
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Garbled Economics in the WSJ on Argentina Dollarization
“Dollarization may not be the first-best solution for Argentina, though it’s hard to imagine it will be worse than hyperinflation.” ~Jason Sorens
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Hyperinflation and Dollarization: A Path to Economic Stability for Argentina
“The risk of hyperinflation in Argentina does not arise from the intention to dollarize but from a central bank that appears incapable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent.” ~Nicolas Cachanosky
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Timiraos on Supply-Side Disinflation
“Slowing down total spending growth (current-dollar GDP) by hiking interest rates and shrinking the balance sheet clearly mattered. Supply-side improvements do too, but they’re likely playing the role of the sidekick rather than the hero.” ~Alexander W. Salter
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Dollarization without Fiscal Prudence Is Not Possible. With Fiscal Prudence, It’s not Necessary.
“Argentinean problems are first political, then fiscal, and then monetary, and they need to be solved in the same order.” ~Leonidas Zelmanovitz
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The Fed Delivered Disinflation
“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~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
-
•
Lessons from Argentina’s Dollarization Debate: The Challenge of the Commitment Device
“If a large country like Argentina were to fare better under dollarization, economists would be forced to reconsider the role of central banks in monetary theory.” ~Nicolas Cachanosky
-
•
The West Should Strengthen Ties with Argentina’s New President Javier Milei
Argentina just elected Javier Milei, a boisterous, wild-haired economist with a pro-market agenda to transform the nation’s economy. After decades of Peronist rule, Argentina is now home to the first libertarian head of state in modern history, a feat that many in the media seem to miss. Even before the official results were announced, voters…
-
•
Argentina’s Rampant Inflation, Explained (in One Chart)
“Whichever definition one prefers to use — an expansion of the money supply which leads to price increases, or a broad and sustained increase in consumer prices — inflation is caused by the governments and central banks who control the money supply.” ~Jon Miltimore
-
•
Politicians Talk; Entrepreneurs and Scientists Do
“The worse the inability to get universal political agreement becomes, the better and more cost-efficient become the small-scale, positive-externality, science-based attempts at just doing the work.” ~Joakim Book
-
•
Garbled Economics in the WSJ on Argentina Dollarization
“Dollarization may not be the first-best solution for Argentina, though it’s hard to imagine it will be worse than hyperinflation.” ~Jason Sorens
-
•
Hyperinflation and Dollarization: A Path to Economic Stability for Argentina
“The risk of hyperinflation in Argentina does not arise from the intention to dollarize but from a central bank that appears incapable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent.” ~Nicolas Cachanosky
-
•
Timiraos on Supply-Side Disinflation
“Slowing down total spending growth (current-dollar GDP) by hiking interest rates and shrinking the balance sheet clearly mattered. Supply-side improvements do too, but they’re likely playing the role of the sidekick rather than the hero.” ~Alexander W. Salter
-
•
Dollarization without Fiscal Prudence Is Not Possible. With Fiscal Prudence, It’s not Necessary.
“Argentinean problems are first political, then fiscal, and then monetary, and they need to be solved in the same order.” ~Leonidas Zelmanovitz
-
•
The Fed Delivered Disinflation
“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~Alexander W. Salter