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: James L. Caton, J.P. Koning

Better Explanations for Inflation

– June 29, 2022

“We have enough information to conclude policy mistakes, especially on the demand side, go a long way toward explaining today’s inflation.” ~ Alexander William Salter


Will Federal Reserve Losses Impact Fed Shareholders or Affect Monetary Policy?

– June 25, 2022

“Since it started raising interest rates, the Fed has already experienced mark-to-market losses of epic proportions, and will soon face large operating losses, something it has never seen in its 108-year history.” ~ Paul H. Kupiec & Alex J. Pollock


Bad Explanations for Inflation

– June 23, 2022

“Hopefully, these lousy explanations will soon fade out of the public’s consciousness. We need to focus on what matters: a comparative abundance of money over goods. ” ~ Alexander William Salter


Are Cryptoassets The Great Scam?

– June 20, 2022

“The regulations in the Lummis-Gillibrand Responsible Financial Innovation Act, made public on the same day as publication of Krugman’s article, are far more likely to provide a brighter future than prohibiting cryptocurrencies, stablecoins or other digital assets.” ~ Gerald P. Dwyer


FOMC Projects Even Higher Inflation

– June 17, 2022

“The Fed is not even committed to bringing inflation back down to 2 percent very quickly. The median FOMC member currently projects inflation will remain above target through 2024. We had better get used to high inflation. We will likely be dealing with it for years.” ~ William J. Luther & Morgan Timmann


We Still Need Milton Friedman

– June 13, 2022

“Monetary policy should be about money—not specific markets, but their common denominator. The sooner we enlist Friedman to help ‘run the show,’ the faster we can clean up our economic messes.” ~ Alexander William Salter


Putting “Money” Back in “Monetary Policy:” A Response to Dan McLaughlin

– June 11, 2022

“The way we fix things is by carefully diagnosing demand-side and supply-side problems. When it comes to demand, we’re talking about central bank activity. Unfortunately, none of McLaughlin’s four points are in the ballpark.” ~ Alexander William Salter


Making Sense of Monetary Policy and the Future of Inflation

– June 10, 2022

“The expansion of circulating currency has diminished to rates comparable to pre-pandemic lows. These factors and the current state of business inventories suggest that inflationary pressures are likely near their limit.” ~ James L. Caton


Are Supply Chain Issues Driving Inflation?

– June 8, 2022

“Inflation can be a serious problem, especially if it becomes persistent. Yet, the willingness of politicians to blame supply disturbances and corporations rather than acknowledging that loose monetary policy is largely responsible for today’s inflation is even more worrisome.” ~ Nicolás Cachanosky


Money and the Rule of Law: Looking Back After a Year

– June 7, 2022

“We face even more difficult challenges ahead. We who believe in good economics and prudent political economy have our work cut out for us if we want to bring the rule of law to central banking.” ~ Alexander William Salter


When Did The Fed Change Its Tune?

“The Fed could have—and should have—taken prompt action to bring down inflation. It didn’t. Now inflation is much higher—and much harder to deal with—than it otherwise would have been.” ~ William J. Bergman & William J. Luther


Yes, Supply Problems Can Cause Inflation

– June 1, 2022

“We use models, mathematical or otherwise, because they help us understand the real world. Let’s not define that world out of existence. Supply problems can, in fact, cause inflation.” ~ Alexander William Salter