February 22, 2022 | Monetary Policy
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Over the past 50 years, economists have spilled a lot of ink studying and debating periods of high inflation that began in the late 1960s, continued throughout the 1970s, and ended with the disinflation of the early 1980s. Although any particular contribution to the inflation debate of the 1970s often involved technical details about monetary policy and economic models, the debate was actually about something bigger and more fundamental. Who is responsible for inflation? Put differently, if one analogizes inflation to a fire, is the central bank the arsonist or the firefighter? The answer is that central banks are the arsonist. Central banks are inflation creators, not inflation fighters.
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February 23, 2022 | Government Spending
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The “debt ratio” is the federal government debt held by the public as a share of GDP. In recent years, however, economists and policymakers have shied away from using the debt ratio to measure fiscal sustainability, turning to new definitions instead. In “Fiscal Sustainability: High Stakes and Low Interest,” Veronique de Rugy and Jack Salmon argue that these new definitions of fiscal sustainability are misleading and understate the risks associated with the US government debt trajectory.
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February 21, 2022 | Healthcare
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Nurse practitioners are often restricted by state law when it comes to applying their skills. Removing these barriers would reduce the challenges that vulnerable populations encounter in accessing primary care. Current Kansas law requires nurse practitioners to enter into written protocols with physicians. Kansas would not be going out on a limb by eliminating this requirement. Colorado, Iowa, and 23 other states and jurisdictions already permit nurse practitioners to work without written protocols. Kansas has also temporarily waived this requirement for nurse practitioners in light of the current public health emergency.
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February 24, 2022 | Financial Regulation
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Although regulatory sandboxes have significant potential benefits, some risks must be guarded against. One area of obvious concern is consumer protection. One critique of sandboxes is that they remove necessary consumer safeguards. These risks can be guarded against in a well-executed sandbox that requires applicants to have a viable plan, have the ability to execute that plan, and make customers whole in the event of a failure. Likewise, the agency responsible for administering the sandbox must be able to conduct adequate vetting and supervision on participants and be able to force a participant to make customers whole if necessary and appropriate.
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February 23, 2022 | Urban Economics
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Local governments have power over land use, and they bear the final responsibility in using these powers justly. But the exercise of local land use authority relies on institutions designed by the state. Thus, the state legislature has the responsibility of adjusting institutions that are working poorly for citizens, markets, or local governments. HF 3256 touches several aspects of the state’s role in setting the framework for the exercise of local power over land use. It would limit the use of some fiscal tools and newly allow the use of others, preempt some zoning controls, and adjust the planning process.
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February 22, 2022 | Urban Economics
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Since striking down the city’s parking requirements in 2017, Buffalo has seen the development of more than 1,000 new homes and several flourishing new transit-dependent businesses. Rather than mandating a specific number of parking spots for new buildings, the Buffalo code now requires large developments to include a transportation demand management plan.
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