There’s No Such Thing as a Wage-Price Spiral

Hotter-than-expected inflation has rekindled fears about a wage-price spiral. Writing in the Wall Street Journal, Jason Furman argues the Fed should tighten even faster. The economy’s “underlying inflation” is due to “extremely tight labor markets,” he writes. Although Furman prefers the phrase “wage-price persistence,” his position is clear: central bankers must push against the “rapid


Understanding Inflationary Finance

Despite common assertions to the contrary, government spending does not necessarily cause inflation. Whether it does so depends on the willingness of the monetary authority to help finance the government spending by printing money.  Inflationary finance, or seigniorage, can be an appealing source of revenue to government officials. Relative to other types of taxes, it


America Misses The Power Objective

America Misses The Power Objective Authored by Francis Sempa via RealClear Wire, The ideology that drives U.S. policy in Ukraine is eroding our strategic position abroad. On February 20, President Biden made a “surprise” visit to Kyiv, where he announced another half-billion dollars in aid to Ukraine, and stated, “Kyiv stands, Ukraine stands, Democracy stands.” “Americans stand