Monetary Policy

Sponsored by Bob Tancula.

Although there has been excitement and fanfare over the recent BRICS meetings and proclamations, it is doubtful that these economies’ performance can match their rhetoric.

Monetary authorities and monetary economists try to define money without understanding what money really is: a medium of exchange.

Keynesians claim that the source of economic growth is consumer spending. Austrians know that net savings are the key to a growing economy.

In the wake of bad news on inflation, the Federal Reserve is pushing up interest rates. However, a Fed-induced higher rate is not the same as an interest rate decided by the market.

While court economists such as Paul Krugman insist that inflation is government's way of ensuring full employment, in reality, inflation is one of the many ways governments steal from productive people.

The affordability crisis is upon us. Housing, food, you name it, life is becoming expensive. The government blames business, but perhaps government officials should look in the mirror.

Monetary policy is never neutral. It benefits some while impoverishing others.

As the economy slowly deteriorates, consumer debt rises. In the meantime, the Fed is pushing up interest rates to deal with the inflation it caused. This does not end well.

Javier Milei has promised to make the US dollar Argentina's currency if he is elected. Whether it will help the Argentine economy is another matter.