The Sound Money Project was founded in January 2009 to conduct research and promote awareness about monetary stability and financial privacy. The project is comprised of leading academics and practitioners in money, banking, and macroeconomics. It offers regular commentary and in-depth analysis on monetary policy, alternative monetary systems, financial markets regulation, cryptocurrencies, and the history of monetary and macroeconomic thought. For the latest on sound money issues, subscribe to our working paper series and follow along on Twitter or Facebook.

Advisory Board: Steve H. Hanke, Jerry L. Jordan, Lawrence H. White
Director: William J. Luther
Senior Fellows: Nicolás Cachanosky, Gerald P. DwyerJoshua R. Hendrickson, Thomas L. Hogan, Gerald P. O’Driscoll, Jr., Alexander W. Salter
Fellows: James L. Caton, J.P. Koning

The Federal Reserve’s Moving Target

– May 13, 2022

“If persistent deviations from the Federal Reserve’s target can be costly in terms of resource misallocation, imagine the costs associated with simultaneous fluctuations in both inflation and its target for inflation.” ~ Joshua Hendrickson

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When Should the Federal Reserve Have Moved on Inflation?

– May 12, 2022

“Last month, I joined Caleb Brown on the Cato Daily Podcast. We discussed how inflation—and our understanding of inflation—evolved over the last year, when the Fed should have moved on inflation, and how much grace the Fed deserves when we evaluate its monumental miss.” ~ William J. Luther

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Operation Climate-Change Choke Point

– May 11, 2022

“The Fed—an institution that, time and again, has proven that it cannot forecast the inflation rate or GDP growth over the next three months let alone years into the future—gets to decide what level of individual bank losses are ‘accurate’ in these hypothetical climate apocalypse scenarios.” ~ Paul H. Kupiec

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Modern Day Bills of Exchange

– May 10, 2022

“Bitcoin, or cryptocurrency more generally, allows us to look at issues related to exchange, money, payments, and finance through a new lens.” ~ Joshua R. Hendrickson

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For the Least of These: Against Inflation Economics

“To tame the inflationary beast and to build a more humane economy, especially for the poor, we need to grapple with inflation’s practical and moral effects.” ~ Dylan Pahman & Alexander William Salter

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The Renewed Politicization of the Federal Reserve

– May 5, 2022

“Central bank independence can only be maintained by focusing on the narrow goals assigned by Congress. By straying from its mandate, Fed officials have chosen to base their decisions on politics rather than on sound economics.” ~ Thomas L. Hogan

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Lisa Cook is Unqualified for the Federal Reserve Board

– May 4, 2022

“It’s time to end mandate drift once and for all. We need qualified nominees who understand the proper role of monetary policy. Unfortunately, Dr. Cook falls short on both counts.” ~ Alexander William Salter

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The Fed is Responsible for Great Inflations

– May 3, 2022

“It’s time the Fed accepts responsibility and moves decisively to curb inflation before the problem gets even worse. Volcker’s Fed whipped inflation, and Powell’s Fed can, too.” ~ Nicholas Curott & Tyler A. Watts

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Prices Continue to Rise, Exceeding Fed Projections

– April 29, 2022

“The Fed seems resolved to see inflation climb further. I expect FOMC members will revise up their projections of inflation again in June. They should revise their course of action, to bring inflation down as planned, instead.” ~ William J. Luther

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Asymmetric Average Inflation Targeting and Expectations

– April 27, 2022

“A conventional average inflation target would have anchored expectations and reduced the inflation risk of long-term contracting, promoting economic growth in the process. An asymmetric average inflation target falls far short of that goal.” ~ William J. Luther

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Supply Disturbances Do Not Explain High Inflation

– April 25, 2022

“Unfortunately for the administration, their politically-convenient supply-side stories explain far too little. Today’s inflation is primarily the result of excessive nominal spending, which the Fed could have and should have offset.” ~ William J. Luther

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Mandate Drift at the Fed Is Par for the Course

– April 24, 2022

“We must decide, so long as we have a central bank, what we want it to do. The best feasible reforms tighten the Fed’s leash. A constrained Fed is a competent Fed. A drifting Fed is a danger to the public.” ~ Alexander William Salter

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