Tag: Inflation
Questions—and Answers—for Janet Yellen
The Senate hearings to confirm Janet Yellen as Federal Reserve Board Chairwoman are likely to be held next week, according to news reports. Here are some Questions that I hope the Senators will ask her, along with what I regard as the Wrong Answers and the Right Answers. I expect that her actual answers...
Read More »
New Book Exposes the ‘Terrible 10’ Worst U.S. Economic Policy Mistakes
Despite enjoying impressive economic growth over the past century, Americans have also been the victims of scores of stupid government mistakes that have made them poorer. For many the blunders led only to temporary setbacks, but for others the errors created life-altering disasters from which they never recovered. In the new book The Terrible...
Read More »
Explaining College Cost Inflation
Tuition at America’s institutions of higher learning, both public and private, has been rising faster than any other component of the cost of living, including healthcare, for about two decades. There are many explanations for this currently on offer, such as reductions in teaching loads for senior faculty members, but that can’t be the...
Read More »
Sean Penn’s Hero, Killer of Free Speech
Joining those mourning the passing of Hugo Chavez in Venezuela recently, Sean Penn called him “a great hero to the majority of his people.” But how would he know? The final nail was driven into the coffin of independent journalism in Venezuela last week with the forced sale of the last remaining television network...
Read More »
The Federal Reserve’s First Century
One factor often cited as contributing to the decline of the Roman Empire was the debasement of the currency. In a period of about 150 years following Emperor Nero’s reign (from 54 to 68 AD) the value of Rome’s currency fell by 50%. By 250 AD, 200 years after Nero, the value of Rome’s...
Read More »
Monetary Policy and Heightened Price Volatility in Raw Materials Markets
Despite the Fed’s breathtaking increase of base money since the autumn of 2008, the money stock as measured by conventional concepts such as M2 has not increased greatly, and hence, as ordinary quantity-theory-of-money thinking would lead us to expect, inflation as measured by conventional concepts such as the consumer price index (CPI) has been...
Read More »
A Bogus Example of Controlling Inflation with Price Controls
As the U.S. government prepared for and then engaged fully in World War II, it made increasingly stringent efforts to control inflation by imposing price controls. Late in 1942, these controls were strengthened substantially, and from early 1943 through mid-1946, when the controls were allowed to lapse, the consumer price index rose very little....
Read More »
The Fiscal Cliff and Policy Uncertainty
In today’s issue of the Wall Street Journal, economics editor David Wessel has a useful column about policy uncertainty—worries about government spending, the expiration of provisions in the tax code, inflationary expectations, and the like—and its role in hampering economic growth by discouraging private investment. (The piece is available online to WSJ subscribers here.)...
Read More »
Robert Reich to Dems: Hold the Middle Class Hostage
In a recent blog post Robert Reich takes the Obama administration to task for—gasp—trying to forestall “Taxmageddon”—the potentially devastating combination of expired tax rate cuts and new taxes slated to go into effect automatically on January 1. Mr Reich suggests Mr. Obama ought instead let it occur as scheduled: his strongest bargaining position would...
Read More »
Extraordinary Demand to Hold Cash—The Mystery Persists
Since the fall of 2008, the Federal Reserve System has pumped an almost incomprehensibly large amount of reserves into the commercial banking system—about $1.4 trillion. In normal circumstances, this action would have given rise to hyperinflation. Of course, not only has no hyperinflation occurred, but scarcely any inflation at all has occurred, and policy...
Read More »
  • Catalyst
  • MyGovCost.org
  • FDAReview.org
  • OnPower.org
  • elindependent.org