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, Crisis, Government, Monetary Policy

What Did the Fed Know in the Great Recession?

Thomas L. Hogan

– February 2, 2022

“The Fed’s poor forecasting record should make us skeptical of its ability to effectively manage the money supply in times of economic turmoil. It would be prudent to consider structural reforms that might improve FOMC’s decision-making process.” ~ Thomas L. Hogan

Crisis, Government, Inflation

Price Controls?!

William J. Luther

– February 1, 2022

“Price controls are a bad idea. But support for them appears to be growing. They are a terrible tool for dealing with inflation. They make no effort to reduce nominal spending. And they exacerbate supply constraints.” ~ William J. Luther

Central Banking, Government, Inflation

Inflation is High, Will Remain Elevated for Years

William J. Luther

– January 31, 2022

“At this stage, two things seem pretty clear: Inflation is high and will likely remain above target for a few years. My own view is that the FOMC is painting a rather rosy picture, and that market expectations provide a better guide for estimating inflation.” ~ William J. Luther

Economic Education, Government, Inflation, Monetary Policy

Greedy Corporations and Inflation

Gerald P. Dwyer

– January 29, 2022

“Only a monetary policy geared to reduce inflation will be effective in reducing inflation. This is as true now as when the Federal Reserve lowered inflation in the early 1980s.” ~ Gerald P. Dwyer

Cryptocurrency, Economic Education, Energy

Bitcoin Is Not a Battery

William J. Luther

– January 18, 2022

“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

Economic Education, Government, Monetary Policy

Does Monetary Policy Matter?

Thomas L. Hogan

– January 13, 2022

“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

Economic Education, Fiscal Policy, Government, Inflation

Why Deficits Matter

Alexander William Salter

– January 11, 2022

“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

Central Banking, Economic Education, Financial Markets, Monetary Policy

Forecasting Prices from FOMC Projections

William J. Luther

– January 8, 2022

“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

Economic Education, Media, Monetary Policy

Some Frustrating Economics in the Wall Street Journal

Alexander William Salter

– January 6, 2022

“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

Crisis, Government, Inflation, Monetary Policy

Fed Officials Think Inflation Should Remain High Through 2024

William J. Luther

– December 23, 2021

“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

Economic Education, Free Markets, Inflation

Supply and Demand Is Not Just for Microeconomics

Alexander William Salter

– December 16, 2021

“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

Crisis, Government, Inflation, Monetary Policy

How Much Can the Supply Chain Explain the Rise of Inflation?

Nicolás Cachanosky

– December 15, 2021

“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