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

The FOMC Was Right to Not Hike

– November 7, 2023

“The best approach for the FOMC is to keep its rate target where it is. We should wait for additional inflation data in November before calling for even-tighter monetary policy.” ~Alexander W. Salter


Inflation Remains High in September

– November 3, 2023

“The Fed should keep monetary policy tight as inflation returns to its 2-percent target. But if it tightens too much, it will push the economy into an unnecessary and painful recession.” ~William J. Luther


Alan Blinder: Let Them Eat Disinflation

– November 1, 2023

“Blinder thinks deflation always and everywhere causes economic harm. ‘It takes a truly sick economy to cause deflation,’ he warns. But he’s wrong.” ~Alexander W. Salter


The IMF is Wrong – and Right – About Crypto

– November 1, 2023

“The IMF and FSB’s recommendations are transparently pro-government and anti-citizen. They overstate the potential harm of cryptocurrencies and propose monitoring systems that would benefit tyrannical governments at the expense of the public.” ~Thomas L. Hogan


Inflation Ticks Up Again. Keep an Eye on Oil

– October 18, 2023

“Major changes in oil prices seem likely to drive the near-term changes in CPI inflation, both headline inflation and possibly core as well. Another big question is how the Fed will respond.” ~Thomas L. Hogan


Forced Reconversion to that “Old-Time Fiscal Religion”

– October 17, 2023

“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter


Inflation was Worse than We Thought

– September 30, 2023

“Although Fed officials were late to tighten monetary policy, their efforts over the last year appear to have worked. The risk today is that monetary policy is too tight—and will remain so for too long.” ~William J. Luther


Wishful (Protectionist) Thinking 

– September 28, 2023

“Specialization and productivity increase when the market’s size extends across national borders. But tariffs reduce the extent of the market and thereby reduce specialization.” ~Paul Mueller


Another Rate Hike? Let’s Not

– September 26, 2023

“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter


Fed Continues to Signal Another Rate Hike

– September 20, 2023

“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther


Don’t Panic over the Latest Inflation Numbers

– September 14, 2023

“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter


AIER’s Everyday Price Index Sees Biggest Monthly Jump since January

– September 13, 2023

“Despite some improvements since the apparent peak 13 months ago, consumers and businesses are still contending with 31 months of above-trend rising prices.” ~ Peter C. Earle