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

Crisis, Inflation, Monetary Policy, Philosophy

For the Least of These: Against Inflation Economics

Alexander William Salter

Dylan Pahman

– May 8, 2022

“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

Central Banking, Crisis, Government, Inflation

The Renewed Politicization of the Federal Reserve

Thomas L. Hogan

– 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

Crisis, Government, Inflation, Monetary Policy

Lisa Cook is Unqualified for the Federal Reserve Board

Alexander William Salter

– 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

Central Banking, Crisis, Inflation, Monetary Policy

The Fed is Responsible for Great Inflations

Nicholas Curott

Tyler Watts

– 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

Economic Trends, Inflation, Monetary Policy

Prices Continue to Rise, Exceeding Fed Projections

William J. Luther

– 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

Central Banking, Economic Education, Monetary Policy

Asymmetric Average Inflation Targeting and Expectations

William J. Luther

– 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

Crisis, Economic Education, Inflation, Monetary Policy

Supply Disturbances Do Not Explain High Inflation

William J. Luther

– 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

Central Banking, Economic Education, Monetary Policy

Mandate Drift at the Fed Is Par for the Course

Alexander William Salter

– 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

Books, Economic Education, Free Markets

The Everyman’s Economics Book We’ve Been Waiting For

Alexander William Salter

– April 11, 2022

“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

Central Banking, Economic Education, Monetary Policy

Why the Money Supply Should (Sometimes) Change

Alexander William Salter

– April 4, 2022

“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

Central Banking, Crisis, Inflation, Monetary Policy

Has the Fed Abandoned Its Average Inflation Target?

William J. Luther

– April 1, 2022

“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

Authoritarianism, Cryptocurrency, Government, Technology

Crypto’s Privacy/Commingling Dilemma

J.P. Koning

– March 31, 2022

“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