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. DwyerJoshua R. Hendrickson, Thomas L. Hogan, Gerald P. O’Driscoll, Jr., Alexander W. Salter
Fellows: J.P. Koning

Efforts to Depoliticize the Fed Will Likely Make Matters Worse

– February 3, 2023

“These efforts to increase Congressional oversight are unlikely to depoliticize the Fed. Indeed, they are likely to make matters even worse.” ~ Nicolás Cachanosky


Should the Fed Stop Tightening?

– February 2, 2023

“The Fed should stay the course. Putting the nail in the inflationary coffin is more important than hyper-calibrating a ‘soft landing.’ But it likely won’t be long before we’re done.” ~ Alexander William Salter


The FOMC: To Pause or Not to Pause?

– February 2, 2023

“Given uncertainties surrounding the unusual stimulus and the lagged effects of monetary policy, it would be prudent to hold the Federal Funds rate constant for a few months and see how the economy responds to recent policy.” ~ Gerald P. Dwyer


Headline Inflation Falls, But Core Inflation Remains Elevated

– January 30, 2023

“At this point, it seems likely Fed officials will move forward with a 25 basis point hike. But how high they will push rates this year and how long they will keep rates high remain open questions.” ~ William J. Luther


FOMC Ratchets Up Inflation Projection

– January 2, 2023

“FOMC member projections suggest that inflation will come down only gradually over the next two to three years and that the price level will remain permanently elevated.” ~ William J. Luther


Putting Aggregate Demand and Aggregate Supply to Work

– December 30, 2022

“Economists use aggregate demand and aggregate supply (AS-AD model) to understand how inflation and real income growth are jointly determined.” ~ Bryan Cutsinger & Alexander William Salter


Does Government Spending Lead to Inflation?

– December 27, 2022

“The key point is that it is the central bank’s willingness to help finance government spending, not the spending itself, that drives inflation. In short: inflation remains a monetary phenomenon.” ~ Bryan Cutsinger


Does the Fed Control Interest Rates?

– December 26, 2022

“The Fed is a failed institution in need of major reforms. But we won’t make the right changes if we don’t understand the basic relationship between central banks and capital markets.” ~ Alexander William Salter


Supply, Demand, and Inflation: The Big Picture

– December 17, 2022

“Where did all this inflation come from? Supply-side issues are a problem, but in terms of magnitudes, it just doesn’t make sense to call them the chief contributor.” ~ Alexander William Salter


Fed Slows Pace of Rate Hikes

– December 16, 2022

“The decision FOMC members make in February will depend on the inflation data released between now and then—and how Fed officials interpret that data.” ~ William J. Luther


CBDC in the USA: Not Now, Not Ever

– December 13, 2022

“The fact that the New York Fed, in conjunction with a handful of private banks, has implemented a ‘pilot’ program with digital tokens is worrying enough. Under no circumstances should we allow the government to roll out a CBDC.” ~ Alexander William Salter


Congress Can Restore the Integrity of the Dollar

– December 7, 2022

“The historical record is clear: Gold-backed money is fully capable of delivering short-run stability and long-run prosperity. The Fed can’t.” ~ David Brat & Alexander William Salter