Lawrence H. White
Summary via publisher (Cambridge U. Press)
The recent rise of dollar, pound, and euro inflation rates has rekindled the debate over potential alternative monies, particularly gold and Bitcoin. Though Bitcoin has been much discussed in recent years, a basic understanding of how it and gold would work as monetary standards is rare. Accessibly written by a pioneering economist, Better Money explains and evaluates gold, fiat, and Bitcoin standards without hype. White uses simple supply-and-demand analysis to explain how these standards work, evaluating their relative merits and explaining their response to shocks, allowing for informed comparisons between them. This book addresses common misunderstandings of the gold standard and Bitcoin, using historical evidence to review the history of money with emphasis on the contest between market and government provision. Known for his work on alternative monetary institutions, White offers a reasoned discussion of which standard is most likely to provide a better money.
Monthly Archives: March 2023
US Bonds Rally As Market Considers Pause Or End For Rate Hikes
Turmoil in the bank industry and renewed concerns of economic headwinds are driving expectations that Federal Reserve interest-rate hiking is at or near an end. In turn, the outlook has sparked a rally in the US bond market.
Macro Briefing: 24 March 2023
* Eurozone business activity rebounds to 10mo high in March: PMI survey data
* Will banks’ $1.7 trillion in unrealized losses become a problem?
* Expected fall in lending due to bank turmoil will help Fed tame inflation
* China could be a ‘relative safe haven’ this year, advise Citi economists
* Bond market volatility has surged, hinting at greater uncertainty and risk
* Tech consulting firm Accenture to cut 19,000 jobs
* US jobless claims edge down, continue to show tight labor market
* US economic activity eases in February: Chicago Fed Nat’l Activity Index
* New US home sales rebound for third month in February:
Another Fed Rate Hike Keeps Policy Modestly Tight
Yesterday’s ¼-point rate hike by the Federal Reserve was expected, although there’s debate about whether another round of policy tightening is wise in the wake of recent bank turmoil following the collapse of Silicon Valley Bank (SVB).
Macro Briefing: 23 March 2023
* Treasury Sec. Yellen: blanket guarantee to all bank deposits not being discussed
* Fed’s Powell says SVB collapse was “outlier” and banking system is “sound”
* Bank stocks fall after comments from Federal Reserve and US Treasury
* Bank turmoil complicates debt-ceiling talks in Washington
* Fed oversight bill backed by Sens. Rick Scott (R) and Elizabeth Warren (D)
* Macro hedge funds hit hard by recent bank turmoil
* Investment firms buying land in US West for water rights
* SEC set to bring lawsuit against Coinbase, a leading crypto firm
* Federal Reserve raises interest rates despite bank turmoil:
Risk Of Wider Bank Crisis Appears To Be Easing
These are still early days for evaluating the risk outlook linked to the banking turmoil triggered earlier this month by the collapse of Silicon Valley Bank (SVB), but there are nascent signs that the worst has passed. Reverberations for the economy remain a threat, but for the moment the odds of contagion risk that spreads across the financial system seem to be receding. Blowback for the economy in the months ahead is less clear, but the immediate goal is avoiding a spike in financial-system risk writ large and on that front there’s a case for cautious optimism.
Macro Briefing: 22 March 2023
* China’s Xi tells Putin he wants to ‘strengthen coordination’ with Russia
* Federal Reserve faces tough choice on today’s decision on interest rates
* Fed will come under intense scrutiny in Congress over SVB failure
* UK inflation posts unexpected increase in February
* Bank crisis is expected to pinch commercial real estate lending
* Bank turmoil takes a bite out of oil prices
* Gold pulls back after briefly trading above $2000 an ounce
* US home prices fall vs. year-ago level–first decline in 11 years
* US existing home sales rebound sharply in February:
Tech And Communications Services Lead Equity Sectors In 2023
Technology is killing it–again. The sector is posting the strongest year-to-date performance for US equity sectors stocks, based on a set of ETF proxies. A close second: communication services. Meanwhile, financials and energy are suffering this year.
Macro Briefing: 21 March 2023
* Chinese leader Xi praises Putin in Moscow as Ukraine war grinds on
* Japan prime minister makes surprise visit to Ukraine
* Japan prime minister announces new Indo-Pacific plan during India visit
* French government survives no-confidence votes re: pension reform
* JPMorgan CEO Jamie Dimon leads efforts for First Republic Bank rescue
* Amazon will cut an additional 9,000 jobs
* Fed should continue rate hikes, says chief economist for S&P global ratings
* Fed to hike interest rates by 1/4 point tomorrow via futures market forecast:
Bonds Extend Rally Amid Fears Of Bank Crisis
Bond prices continued to rebound last week as investors worried that the turmoil in the banking sector could spread.