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

Is Inflation Above the Fed’s Target?

– October 7, 2021

“A credible Fed would anchor expectations to its target growth path. Unfortunately, the Fed has not been credible in the past. That leaves us with a much more difficult question today: what should the Fed do when it hasn’t done what it should have done?” ~ William J. Luther

READ MORE

The Federal Reserve Is Not Credible

– October 1, 2021

“Having persistently undershot its inflation target for nearly a decade, the Fed now looks poised to err in the opposite direction.” ~ William J. Luther

READ MORE

Fast Payments Enable Lightning Kidnappings in Brazil

– September 28, 2021

“The only way that the Banco Central do Brasil could completely end PIX-based lightning kidnapping would be to slow the entire system down. That would mean cutting regular Brazilians off completely from the benefits of real-time payments.” ~ J.P. Koning

READ MORE

Trouble Transacting with Bitcoin

– September 14, 2021

“Problems with bitcoin’s design––including its suboptimal supply constraint and limited transactions capacity––cast doubt on the claim that bitcoin is superior to the monies widely used at present.” ~ William J. Luther

READ MORE

How the Fed Can Improve Financial Stability and Reduce Inequality

– September 13, 2021

“There is clear evidence that bank deregulation can improve financial stability while also shrinking inequality. By lowering the costs of doing business, strong but simple regulations improve job opportunities for low-skilled and minority workers.” ~ Thomas L. Hogan & Amelia Janaskie

READ MORE

What’s Wrong With Bitcoin’s Supply Mechanism?

– September 10, 2021

“Bitcoin’s supply mechanism fails to provide a long-run nominal anchor or promote monetary stability. A better money would employ a supply mechanism that offsets changes in the demand to hold it.” ~ William J. Luther

READ MORE

Was the OnlyFans Ban a Symptom of Creeping Financial Censorship?

– September 9, 2021

“It is unfortunate that OnlyFans content creators were nearly deplatformed. However, it seems to be a local incident, and not indicative of a global decline in accessibility to payments.” ~ J.P. Koning

READ MORE

Government Opposition to Bitcoin

– September 7, 2021

“Government obstacles to widespread adoption take many forms, from mere transaction policy to outright bans on alternatives while providing close substitutes in the form of central bank digital currencies.” ~ William J. Luther

READ MORE

Bitcoin and the Network Effects Problem

– September 6, 2021

“There are steps entrepreneurs can take to help reduce the network effects problem. It is, nonetheless, an obstacle bitcoin must overcome to achieve widespread adoption.” ~ William J. Luther

READ MORE

Permanent or Transitory Inflation: An Analytical Framework

– August 28, 2021

“Inflation is not a high price level; it is a persistent increase in the price level. Whether inflation persists depends on what Fed officials do next.” ~ Nicolás Cachanosky

READ MORE

How Does the Federal Reserve Evaluate Policy?

– August 27, 2021

“If inflation does not relent in approaching months, this call for a modest tightening will likely develop support from other ranking members of the Fed. I’m willing to bet that support for tightening will be strongly correlated with the value of the loss function presented here.” ~ James L. Caton

READ MORE

The Great Inflation Debate Is Missing Why Inflation Matters

– August 26, 2021

“The public debate over inflation is a great opportunity to focus on what really matters: subjecting monetary policymakers to the rule of law. Unfortunately, we’re currently squandering that opportunity to repeat pop-macroeconomic fallacies.” ~ Alexander W. Salter

READ MORE