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: J.P. Koning
Prices Continue to Rise, Exceeding Fed Projections
“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
READ MORE
Asymmetric Average Inflation Targeting and Expectations
“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
READ MORE
Supply Disturbances Do Not Explain High Inflation
“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
READ MORE
Mandate Drift at the Fed Is Par for the Course
“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
READ MORE
The Everyman’s Economics Book We’ve Been Waiting For
“Economics is indeed universal: While it might not say everything about something, it says something about everything. Thanks to Hennessey, many more people will know it.” ~ Alexander William Salter
READ MORE
Why the Money Supply Should (Sometimes) Change
“In the long run, the money supply isn’t that important. But in the short- to medium-run, it’s pretty important. There are good reasons for the money supply to change.” ~ Alexander William Salter
READ MORE
Has the Fed Abandoned Its Average Inflation Target?
“Despite affirmations to the contrary, the Fed appears to have abandoned its average inflation target. Excessive nominal spending has pushed prices well above the level consistent with the Fed’s average inflation target.” ~ William J. Luther
READ MORE
Crypto’s Privacy/Commingling Dilemma
“Mixing is a less-than ideal way to gain privacy. In solving for privacy, mixing introduces another problem; commingling. When you use a mixing tool, you’re introducing your licit funds into the same pot as potentially criminally-derived funds.” ~ J.P. Koning
READ MORE
Who Needs the Dual Mandate?
“The American public understands inflation and policymakers have a reasonable degree of control over it. When choosing a policy rule, we need humility first and foremost. Let’s stop asking the Fed for more than it can deliver.” ~ Alexander William Salter
READ MORE
Government Debt and Inflation: Reality Intrudes
“Sooner or later, absent substantially lowering government spending or raising taxes, interest payments will overwhelm the government’s budget. The situation might even be termed a sovereign debt crisis.” ~ Gerald P. Dwyer
READ MORE
FOMC Projects Higher Inflation
“Fed Chair Jerome Powell’s November statement killed the idea that inflation would be transitory. The most recent projections from the FOMC show how deeply that idea has been buried.” ~ William J. Luther & Morgan Timmann
READ MORE
How to Think about Inflation
“If we want to understand inflation, we need a framework to organize our thoughts. Economies are fiendishly complex; without a model that helps us focus on the relevant details, we’re lost in the woods.” ~ Alexander William Salter
READ MORE
