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. Dwyer, Joshua R. Hendrickson, Thomas L. Hogan, Gerald P. O’Driscoll, Jr., Alexander W. Salter
Fellows: James L. Caton, J.P. Koning
Bitcoin Is Not a Battery
“One should not care about the dollar price of bitcoin or the bitcoin price of bitcoin. What really matters is how many real goods and services one can buy with bitcoin––that is, its real purchasing power.” ~ William J. Luther
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Does Monetary Policy Matter?
“The Fed’s actual performance has not been ideal. Its monetary policy mistakes have had dire consequences for ordinary Americans and the US economy. Those mistakes make it clear that monetary policy matters.” ~ Thomas L. Hogan
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Why Deficits Matter
“If we want to argue deficits matter more conventionally, we’ll have to do some more theoretical heavy lifting. The usual aggregate demand stories we tell don’t cut it.” ~ Alexander William Salter
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Forecasting Prices from FOMC Projections
“While the period of time over which the Fed is committed to averaging inflation is not explicit, one might have reasonably expected it to ultimately offset the high inflation associated with the pandemic. Alas, that no longer appears to be the case.” ~ William J. Luther
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Some Frustrating Economics in the Wall Street Journal
“The Journal is usually a bastion of sound economics. Alas, nobody bats 1.000. If we want an economic ‘return to normalcy,’ we have to get these basics right.” ~ Alexander William Salter
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Fed Officials Think Inflation Should Remain High Through 2024
“It seems the Fed is not committed to hitting its average inflation target. Inflation will be transitory in the sense that the rate will eventually return to 2 percent. But the price level will likely remain elevated.” ~ William J. Luther
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Supply and Demand Is Not Just for Microeconomics
“The usefulness of supply and demand is most obvious in the case of microeconomics, which focuses on households and firms. But it’s just as handy for macroeconomics in studying economy-wide phenomena like growth and business cycles.” ~ Alexander William Salter
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How Much Can the Supply Chain Explain the Rise of Inflation?
“Once we move from the realm of small price level movements to a more permanent and higher inflation rate scenario, it is more likely that the source of the rise in the price level is on the monetary side—even if the government doesn’t want to admit it.” ~ Nicolás Cachanosky
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The New Status Quo for Public Finance
“After the 2008 financial crisis, the US never returned to pre-crisis growth levels. My expectation is that unless private investors find a means of avoiding this subsidization of federal borrowing, we never will.” ~ James L. Caton
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Will the Fed Do Enough to Bring Down Inflation?
“The Fed must act boldly and swiftly to course correct. Otherwise, inflation expectations could become unanchored––leaving the Fed to choose between restoring its credibility by engineering a recession or tolerating high inflation in perpetuity.” ~ William J. Luther
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What Does Kyle Rittenhouse’s Legal Campaign Tell Us about Access to Crowdfunding?
“For now, Visa and MasterCard haven’t made any discernible efforts to limit crowdfunding accessibility based on concerns over their brand. But if they were to start, that would be a concerning development.” ~ J.P. Koning
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Financial Regulators Ignore the Costs of Regulation
“According to the main evidence cited by the bank regulators themselves, the NSFR will create a net cost to the U.S. financial system, not a net benefit.” ~ Thomas L. Hogan
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