Making Sense of Monetary Policy and the Future of Inflation
High inflation rates have been making headlines since the beginning of the year. Inflation seems to have caught even investors...
James L. Caton
Inflation: What Causes It, and When Will it Subside?
We have been living under an illusion that the relationship between nominal GDP and the quantity of circulating currency is...
How Will Russia Respond to Financial Sanctions?
NATO countries may not have sent troops into Ukraine, but they are attempting to inflict pain on Russia through economic...
Did Ben Bernanke Implement QE before the 2008 Financial Crisis?
Quantitative easing refers to the Federal Reserve’s large-scale asset purchases. The term has become a buzzword among commentators and economists...
Is This What Monetary Tightening Looks Like?
Federal Reserve officials say they are ready to tighten the stance of monetary policy. According to the December Federal Open...
The New Status Quo for Public Finance
States are traditionally thought of as reliable borrowers. This might seem ironic since a state, backed by control over the...
Crowding Out Under Quantitative Easing
Negotiations over President Biden’s “Build Back Better” plan rage on. The budget bill, which initially included $3.5 trillion in expenditures...
Is Larry Summers Channeling Benjamin Anderson?
Larry Summers, who served as U.S. Treasury Secretary under Bill Clinton, and head of the National Economic Council in the...
How Does the Federal Reserve Evaluate Policy?
Since March 2020, the Federal Reserve has engaged in an unprecedented expansion of the balance sheet, which now stands at...
Why is Monetary Policy Focusing on the Overnight Lending Market?
Monetary policy attempts to influence inflation expectations. With its recent accumulation of reverse repurchase agreements, the Federal Reserve hopes to...
Why Do Inflation Expectations Matter?
There is, understandably, a lot of talk about inflation lately. Much of this talk is rooted in a naïve interpretation...
