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, Economic Education, Monetary Policy

Stages of Quantitative Tightening

Thomas L. Hogan

– March 9, 2022

“There are several steps to go before the Federal Reserve starts selling assets to reduce the size of its balance sheet. That type of active tightening will probably not begin for a while.” ~ Thomas L. Hogan

Crisis, Monetary Policy, War and Peace

How Will Russia Respond to Financial Sanctions?

James L. Caton

– March 7, 2022

“The sanctions are intended to increase the cost of war for the Russian government. Russia currently finds itself outside of the global financial system. Over time, however, the burden of financial sanctions will weaken.” ~ James L. Caton

Crisis, Inflation, Monetary Policy

Inflation Rips Ahead of March FOMC Meeting

William J. Luther

– March 1, 2022

“The Fed should acknowledge that the inflation problem is much worse than it thought when it sets its course of action and adjust course accordingly. More likely, it will stay the course—and inflation will continue to outpace its projections.” ~ William J. Luther

Economic Education, History, Inflation, Monetary Policy

What Can the US Learn from Argentina’s Inflation?

Nicolás Cachanosky

– February 24, 2022

“We can learn by looking at countries that have employed these strategies before. Inflation in the U.S. has been modest by Argentine standards. To keep it that way, the US must avoid repeating Argentina’s mistakes.” ~ Nicolás Cachanosky

Economic Education, Inflation, Monetary Policy

Inflation Exceeds Fed’s Projection

William J. Luther

– February 17, 2022

“I chalk it up to wishful thinking. Fed officials were not yet willing to tighten monetary policy. They hoped inflation would get better on its own. It didn’t, and their projections underestimated inflation as a result.” ~ William J. Luther

Central Banking, Crisis, Economic History, Monetary Policy

Did Ben Bernanke Implement QE before the 2008 Financial Crisis?

James L. Caton

– February 14, 2022

“The Bernanke Fed was practicing QE much earlier than is widely thought. This early QE experiment, likely intended to stabilize short-term inflation expectations, transformed monetary policy prior to the crisis.” ~ James L. Caton

Crisis, Fiscal Policy, Government, Inflation

Fiscal Policy and Inflation

Alexander William Salter

– February 10, 2022

“When it comes to fiscal policy, we’re off the edge of the map. The typical stories told by unreconstructed Keynesians are clearly wrong. But that doesn’t mean we never need to worry about fiscal inflation.” ~ Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Unemployment

Is This What Monetary Tightening Looks Like?

James L. Caton

– February 6, 2022

“When will the Federal Reserve begin to unwind its balance sheet this time? If the meeting minutes indicate the trajectory of policy, reductions will begin within the next two years.” ~ James L. Caton

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