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As Brazil's example shows, price controls cannot solve the problems caused by lax monetary and fiscal policies.
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The Fed Tied Its Own Hands
The central bank is reaping what it sowed during the pandemic. / Read here
FEE THE ECONOMY ISN'T AN ENGINEERING PROJECT
https://fee.org/articles/the-economy-isnt-an-engineering-project/?fbclid=IwY2xjawEqNZRleHRuA2FlbQIxMQABHayMNY2-wnJ_l5a7asdMMiYxU1_A-dqnSVOnKWclvOx1gCzgYAMgtcf41Q_aem_odQ08aXS3T-yLDPD_ZeRWw
Casey B. Mulligan
A Regulatory Onslaught The Biden administration’s policies amount to lifetime costs of nearly $50,000 per family. / Read here
It is an indictment of democracy that neither of America’s political parties seem capable of addressing the fiscal crisis caused by the transfer state.
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It is painfully obvious that meaningful appreciation of the economic past is lacking. And that ignorance has consequences outside the academy. READ MORE › Reviews of Swift’s latest work juxtaposed its quality with her unmatched commerciality. Regardless of critical assessment of Swift, her work has achieved unmatched mass-market success. In her latest for Bloomberg Opinion, MI’s Allison Schrager considers whether today’s “winner-take-all” economy—where an industry offers big rewards to a few stars while smaller players struggle to make a living—has disincentivized creative thinking. Achieving wild success in any field requires appeasing gatekeepers with a vested interest in maintaining relative homogeneity within that field. Creatives (or any professional) pushing the bounds of the mainstream with offensive, provocative, or simply unusual work will struggle to reap any meaningful financial rewards, dis-incentivizing the out-of-the-box thinking that often leads to innovation. Government interventions, in attempting to artificially allocate resources, actually help fuel inequality. READ MORE › 
Desmond Lachman suggests that the stock market is partying like it’s 2008. Amid high interest rates and growing geopolitical, financial system, and trade risks to economic recovery, Lachman argues that the stock market should pay closer attention to rising threats to economic stability from Chinese economic stagnation, a commercial real estate collapse, and trade tensions.
MI’s Brian Riedl proposes and structures a congressional commission aimed at reducing the national debt.
Three Things Congress Must Do Before the End of 2023
Elaine McCusker | Hill While Congress has already checked off electing a Speaker of the House, Elaine McCusker shows two more tasks to complete before the end of 2023. First, to avoid a looming government shutdown, Congress needs to negotiate and pass a final fiscal 2024 appropriations package that adheres to the previously enacted Fiscal Responsibility Act caps and move on to fight other battles, such as the increasing deficit, another day. Second, Congress must pass an emergency supplemental bill that will carry through the next election. Doing so will be understandably difficult. However, Americans already know the distractions that will accompany another crazy election cycle next year and must prepare to let those debates dominate lawmakers’ time without causing self-inflicted national security damage. Read more here. >>
Three and Four Teach One and Two a Global Leadership Lesson
Derek Scissors | AEIdeas Germany may pass Japan for third-largest annual gross domestic product this year, as Japan has lost economic ground to Germany due primarily to its terrible debt record. Derek Scissors notes that the US heading down Japan’s path would not be immediately disastrous; however, an end to dollar dominance would wreak havoc in America. Americans do not save much, so high federal borrowing relies on foreign participants. If the dollar is no longer prized, America cannot sell bonds as it does now. Dismissing rising US debt would effectively be embracing a future of domestic austerity and international disorder that would make Japan’s fall look quaint. Learn more here. >>
Conservatism – And The Nation – At A Crossroads
The Neoclassical Growth Of China California, The Great Destroyer
With targeted reforms, the Fed could be made more efficient and more democratically accountable.
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Though he presents himself as an Aristotelian, Jordi Pujols has no interest in recovering ancient liberty.
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Class is not the narrow, monolithic reification of Marx’s imagination. A proper understanding of it is important for conservatism.
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The Fed has lost credibility with markets. We have heard this chorus before, but fixed income markets (among others) continue to validate it. For Barron’s, Stephen Miran explores why the Fed cannot dissuade markets from pricing in short-term rate cuts. In 2020, the Fed adopted a new policy framework that abandoned its traditional task of preempting inflation; it instead would tolerate more inflation, and the low-interest government borrowing that came with it.
As the Fed has raised rates in response to inflation, regional banks have buckled. In addition to the unquantified knock-on effects on the country’s financial system, regional bank challenges pose a threat to commercial real estate, which is typically financed by a loan from a regional bank. Meanwhile, the “return to the office” has failed to materialize
Biden Will Find That Breaking Up with China Is Hard to Do
Hal Brands | Bloomberg Opinion The essential challenge of America’s economic relationship with China is to reap the rewards of interdependence while limiting the vulnerabilities. Hal Brands shows that President Joe Biden’s strategy of decoupling has little chance of being as controlled or immaculate as the administration suggests. First, Congress gets a vote and is messaging that Biden’s strategy is too timid. Next, economic coercion is a two-way street, and China may envision a more thorough decoupling than Biden seeks. Lastly, decoupling is a dynamic process; the deteriorating economic relationship could easily take on a momentum of its own, and tensions in one part of the relationship will spill over into others. Learn more here. >>
Principles and Policies for Competition
Michael Mazza | American Enterprise Institute The United States and the People’s Republic of China (PRC) are in an adversarial relationship and strategic competition. Michael Mazza argues that this is due to the incompatibility of US and PRC visions for global order and the PRC’s rise as a global power. To secure a preponderance of power for the US-led coalition, the United States should abide by nine guidelines as it continues its rivalry with China. These guidelines include investing in American power, developing a deeper understanding of China, supporting liberalism and democratic allies, securing leadership in international organizations, and denying China the means to aggrandize its own power. Going forward, these guidelines should steer US policy throughout the adversarial relationship. Read more here. >>
Persistent Inflation and Unhappy Consumers
Allison Schrager, E21 Inflation may finally be coming down. The newest inflation report suggests inflation may have peaked, but inflation coming down and returning to 2% are two different things. Read more here....
The Fed’s Rate Hikes Could Soon Be Coming to an End
Steven B. Kamin | CNN.com The slowing pace of monetary tightening likely means that the Federal Reserve’s rate hikes will soon be coming to an end. That would be great news for the economy and a smart move for a few different reasons. Full Story
The Fate of the American Conservative
Matthew Continetti | Deseret News The Republican Party of the early 21st century is barely recognizable. What is the GOP’s future? Full Story
A Declining Goldman Sachs
Camillo Padulli, E21 2023 began well, with the IMF significantly increasing global growth projections. However, even as the economic outlooks improves, Goldman Sachs has become an outlier among investment banks due its high coverage ratio. Read more here....
John Cochrane On The Fiscal Theory Of The Price Level, New Keynesian Macroeconomic Models, Consumption-Based Asset Pricing, And Economic Growth
interview with John H. Cochrane via The Capitalism And Freedom In The Twenty-First Century PodcastHoover Institution fellow John Cochrane discusses his career, his new book, The Fiscal Theory of the Price Level, about how inflation can be explained by fiscal and monetary policy, New Keynesian macroeconomic models, consumption-based asset pricing and institutional barriers to economic growth.
Book Club: How Policies Make Interest Groups: Governments, Unions, And American Education
In our latest installment, watch a discussion between Senior Fellow Terry Moe and Hoover Fellow Michael Hartney, author of How Policies Make Interest Groups: Governments, Unions, and American Education 
Edward Chancellor has given us a colorful and provocative review of the history, theory, and the profound effects of interest rates.
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SOLZHENITSYN & HAYEK: NOBEL PRIZE; BOTH MEN DEFEATED POSITIVISM.
AuthorAn authority on Southwest Asia political economy, and international columnist. covering 'the long war'.
INSTITUTIONS & CULTURE = MARKETS
HOOVER INSTITUTION FRIEDMAN FUNDAMENTALS
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