Pertinent Category: Sound Money Project

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

Central Banking, Inflation, Monetary Policy

When Did The Fed Change Its Tune?

William J. Luther

William J. Bergman

– June 3, 2022

“The Fed could have—and should have—taken prompt action to bring down inflation. It didn’t. Now inflation is much higher—and much harder to deal with—than it otherwise would have been.” ~ William J. Bergman & William J. Luther

Economic Education, Inflation, Monetary Policy

Yes, Supply Problems Can Cause Inflation

Alexander William Salter

– June 1, 2022

“We use models, mathematical or otherwise, because they help us understand the real world. Let’s not define that world out of existence. Supply problems can, in fact, cause inflation.” ~ Alexander William Salter

Financial Markets, Inflation, Monetary Policy

Inflation Slowed in April, But Remains High

William J. Luther

– May 30, 2022

“The Fed increased its federal funds rate target by 50 basis points in May 2022 and looks set to follow with similar rate hikes in June and July. The price level data from April shows no anticipatory effects of the policy.” ~ William J. Luther

Cryptocurrency, Economic Education, Financial Markets

When A Dollar Isn’t a Dollar

Joshua R. Hendrickson

– May 28, 2022

“A few weeks ago the stablecoin called TerraUSD broke its peg from the dollar and collapsed along with the protocol’s flexible price LUNA token, and now you know why.” ~ Joshua R. Hendrickson

Crisis, Government, Monetary Policy

“Woke” Fed Fell Asleep on the Job

Nicholas Curott

James McClure

– May 22, 2022

“With inflation raging at the highest rate in 40 years, it is time to reexamine the Fed’s legitimate responsibilities.” ~ Nicholas Curott & James McClure

Crisis, Inflation, Monetary Policy, Video

Who Is to Blame for Inflation? (Video)

Thomas L. Hogan

Kate Wand

– May 20, 2022

“Is ‘Putin’s Price Hike’ real? Are supply chain disturbances the most significant source of inflation, or is there more to the story? Thomas Hogan gives us his perspective on the causes of inflation.” ~ Kate Wand

Financial Markets, Inflation, Monetary Policy

Inflation: What Causes It, and When Will it Subside?

James L. Caton

– May 18, 2022

“The growth rate of currency in circulation has been back to pre-crisis rates for at least 2 quarters. We should expect inflation and the growth rate of expenditures to follow and inflationary winds to subside as a result.” ~ James L. Caton

Economic Theory, Inflation, Monetary Policy

Should the Fed Devalue Our Currency to Implement Negative Interest Rates?

Lawrence H. White

– May 17, 2022

“Where Agarwal and Kimball comment that the zero lower bound ‘is not a law of nature, but a policy choice,’ I suggest that the same is true about the need to fight an excess demand for money by cutting an interest rate instrument or target.” ~ Lawrence H. White

Economic Education, Inflation, Monetary Policy

The Federal Reserve’s Moving Target

Joshua R. Hendrickson

– 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

Central Banking, Economic Education, Inflation, Media

When Should the Federal Reserve Have Moved on Inflation?

William J. Luther

– 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

Central Banking, Environmentalism, Free Markets, Regulation

Operation Climate-Change Choke Point

Paul H. Kupiec

– 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

Cryptocurrency, Economic History, Technology

Modern Day Bills of Exchange

Joshua R. Hendrickson

– 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