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

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


What’s the Harm in Raising the Inflation Target?

– September 5, 2023

“In addition to increasing workers’ real tax burden, raising the inflation target reduces workers’ real wages by reducing the demand for their labor services.” ~ Bryan Cutsinger


Monetary Policy Remains Sufficiently Tight

– September 4, 2023

“There’s no returning to the pre-pandemic trend for the price level. We’re left with permanently higher prices. Hopefully, the Fed continues to bring inflation down gradually.” ~ Alexander W. Salter


The Floor System Fails

– September 4, 2023

“During normal times, when inflation is low and stable, the floor system increases the burden on taxpayers. The burden is even larger when inflation is high, as it has been over the past two years.” ~ Louis Rouanet


Why Are Mortgage Rates So High?

– September 2, 2023

“Interest rates on mortgages were 2.66 percent just two and a half years ago. Why the sudden increase in rates? The Federal Reserve increased the money supply and generated the worst inflation in many years.” ~ Gerald P. Dwyer


Against a 3 Percent Inflation Target

– September 1, 2023

“If the Fed can really make such an elementary error and get away with it, a major prudential reason for keeping it around would no longer hold.” ~ Alexander W. Salter


Inflation is Back on Target

– August 31, 2023

“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther


The Costly Late Arrival of FedNow

– August 29, 2023

“Policy makers should ensure that the US payment landscape is efficient, accessible, and beneficial for all stakeholders involved with as little government involvement as possible.” ~ Nicolas Cachanosky


Whipped Inflation Now

– August 26, 2023

“The battle for 2 percent inflation has already been won. Fed officials should acknowledge and celebrate the victory.” ~ William J. Luther


A Macroeconomic Agenda for Freedom Conservatives

– August 25, 2023

“It’s time to hit the brakes on modern monetary theory, functional finance, and anything else that justifies using the federal budget as an instrument of social control.” ~ Alexander W. Salter