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. JordanGerald P. O’Driscoll, Jr., Lawrence H. White
Director: William J. Luther
Senior Fellows: Gerald P. DwyerJoshua R. Hendrickson, Nicolás CachanoskyAlexander W. Salter, Thomas L. Hogan
Fellows: James L. Caton, J.P. Koning

federal reserve building

COVID-19 Made the Federal Reserve Sick

– June 24, 2020

“The change in the Fed’s mandate is not something we can afford to ignore. Its new policies come with significant economic and political costs. If we do not come to grips with them, the Fed might not be able to help much when the next crisis hits.” ~ Alexander W. Salter

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fed building, new york, flag

The Fed Is Not Independent, But It Should Be

– June 19, 2020

“To be an effective central bank, the Fed must strive to remain independent of short-term political influence. A strict separation of monetary and fiscal policies helps bolster central bank independence.” ~ Thomas L. Hogan

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money, federal reserve

How the Federal Reserve Literally Makes Money

– June 11, 2020

“The Fed is spending up to US$2.3 trillion to help save the U.S. economy from the coronavirus recession. But where does all that money come from?” ~ William J. Luther

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Keep the Fed Out of Municipal Finance

Keep the Fed Out of Municipal Finance

– June 11, 2020

“Chairman Powell should follow the advice of his predecessors. With the program still in its infancy and economic recovery already underway, now is the time to end the MLF in order to preserve the Fed’s independence, maintain the separation between fiscal and monetary policy, and deter additional calls for municipal bailouts in the future.” ~ Thomas Hogan

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Negative Interest Rates Explained

“If policy does not moderate and if investors are unable to innovate means to protect their positions from these policies, as they often have in the past, the current fiscal and monetary regime places the globe at risk of, at worst, financial catastrophe and, at best, stagnation.”~James L. Caton, Peter C. Earle, William J. Luther

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Federal Reserve of New York 1922

It’s Time to End the Fed’s Dual Mandate

– June 7, 2020

“The choice before us is simple: a central bank that is highly restricted, and therefore effective and independent, or one that is dominated by short-run political concerns, and therefore incompetent and subservient.” ~ Alexander Salter

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The Recovery Has Begun

The Recovery Has Begun, Ahead of Schedule

– June 5, 2020

“Taken together, the most recent jobs report suggests we could see output recover to 90% or more by the end of August. That’s great news. But a complete recovery might take much longer than that.” ~ William J. Luther

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Argentina in Default, Economists Call for Good Faith Negotiations

With Argentina in Default, Economists Call for Good Faith Negotiations

– June 5, 2020

“Argentina’s economic troubles are self-imposed. They are not the fault of its creditors, who just want to be repaid as promised. Any good-faith solution to Argentina’s problems must start by recognizing the real problem: large fiscal deficits.” ~ Nicholas Cachanosky

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It’s Time for a Taxpayer Debit Card

It’s Time for a Taxpayer Debit Card

– June 4, 2020

“Distributing EIP cards instead of checks should reduce the government’s costs of paying relief, speed up the payments pipeline, and provide Americans with a cheaper way of accessing funds than going to check cashing outlets.” ~ J.P. Konig

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federalreserve

Fed Lending Programs Might Be Legal, but They’re Still Bad Policies

– May 31, 2020

“Congress should not use the Fed to accomplish fiscal goals through monetary means. There is no good reason to give the Fed a free pass just because their irresponsible decisions come with statutory cover.” ~ Alexander W. Salter

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The Thin Green Line

– May 28, 2020

“The Fed has again taken unprecedented action to respond to a crisis. Unfortunately, it has gone further towards erasing the separating monetary and fiscal policy, to the detriment of both.” ~ Scott Burns

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R.I.P. Richard H. Timberlake

– May 26, 2020

“Timberlake provided a blueprint for future sound money scholars to conduct thorough and well-respected research on monetary theory and history.” ~ Scott Burns

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