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

Alan Blinder’s Inflationary Incoherence

– August 16, 2023

“There’s nothing wrong with making incorrect predictions. It happens to all of us. There is something wrong with obstinacy in the face of overwhelming contradictory evidence..” ~ Alexander W. Salter


John Cochrane Offers Incomplete Explanation of Inflation

– August 9, 2023

“His analysis implies the Fed could buy every financial asset in the world without causing inflation.” ~ Alexander W. Salter


The Federal Reserve’s Quasi-Fiscal Deficit

– August 6, 2023

“Although realizing losses—or, running quasi-fiscal deficits—is new to the Fed, it is more common in developing countries. The consequences of running quasi-fiscal deficits include inflation and lack of central bank credibility.” ~ Nicolas Cachanosky


Waller Explains Why the Fed is Still Raising Rates

– August 6, 2023

“While Waller sees the recent slowdown in inflation as positive, he is not ready to declare victory as it is only a single data point.” ~ Bryan P. Cutsinger


The Fed Hits 3,000 Percent Inflation

– August 3, 2023

“US inflation was not always as persistently high as it has been under the Fed. Before the Fed, the purchasing power of the dollar was determined by supply of and demand for gold.” ~ Thomas L. Hogan


Disinflation good, Fed bad

– August 2, 2023

“There’s no way for non-market actors to direct credit more reliably than market actors. The discipline of profit and loss is essential.” ~ Alexander W. Salter


The SEC Limits Most People’s Investment Opportunities

– August 1, 2023

“The bill that the US House passed by a voice vote would require the SEC to develop a test to determine whether someone is knowledgeable enough to forgo the investor protections built into public offerings to the general public.” ~ Gerald P. Dwyer


Central Bankers, Let the Price System Work!

– July 26, 2023

“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter


Does Greedflation Fit the Facts?

– July 25, 2023

“While an increase in market power would certainly affect real income growth, the magnitude necessary to explain inflation is implausibly large.” ~ Bryan Cutsinger


Fed Up with Tightening?

– July 19, 2023

“Provided the recent monthly inflation figures give us an accurate forecast, the real federal funds rate is significantly above the natural rate. This indicates monetary policy is restrictive.” ~ Alexander W. Salter


Disinflation is Welcome, but the Fed’s Job Isn’t Done

– July 12, 2023

“The Fed may not need to tighten any further, depending on how markets continue to react to its recent policy changes. But this is no time for complacency.’ ~ Alexander W. Salter


Why President Kennedy’s 1963 “Peace Speech” Matters Today 

– July 10, 2023

“Kennedy focused on humanity’s common interests — ‘we all inhabit this small planet. We all breathe the same air. We all cherish our children’s future. And we are all mortal.’ Most importantly, we all have minds that can value peace over threats and domination.” ~ Barry Brownstein