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

Three Proposals for Price Stability

– May 20, 2023

“As a ‘dark horse’ candidate, Ramaswamy has a greater burden of proof before the electorate. He needs to prove his policy proposals are a cut above his rivals’.” ~ Alexander W. Salter


Can the Fed Continue to Fight Inflation without Risking a Financial Crisis?

– May 18, 2023

“In principle, the Fed has the ability to provide liquidity to the banking system while simultaneously reducing the incentives banks have to make loans.” ~ Bryan Cutsinger


CEA Deserves an F on Bitcoin Mining Tax Analysis

– May 13, 2023

“The CEA’s argument would result in a failure on an introductory microeconomics exam. One expects better from a team of professional economists.” ~ Joshua R. Hendrickson


Bank Term Funding Program Discounts the Discount Window

– May 8, 2023

“The Fed says it created BTFP to ‘support American businesses and households.’ But those businesses and households will ultimately be on the hook if the Fed’s risk-taking turns out to be too much.” ~ Nicolás Cachanosky


Federal Reserve Raises Rate Target, Likely To Pause For Some Time

– May 5, 2023

“In March, the median FOMC member projected the federal funds rate target would close the year above 5.0 percent. But the federal funds futures market is pricing in better-than-even odds that the target rate is less than 5.0 percent following the September meeting.” ~ William J. Luther


On Fed Reforms, Ramaswamy Swings and Misses

– May 4, 2023

“Ramaswamy’s arguments reveal he is unfamiliar with the ins and outs of monetary policy. His suggestions are poorly motivated and won’t result in a stronger economy. He’ll need to do better if he wants to rein in the Fed.” ~ Alexander William Salter


Biden’s Bad Bet: How Regulation Kills Economic Growth

– April 30, 2023

“We need to do two things to clean up this mess: unshackle the economy and shackle the administrative state. Bureaucrats and their political enablers can’t be trusted to curb their ambitions, so we must do it for them.” ~ Alexander William Salter


Yes, the Fed Is a Failure

– April 24, 2023

“DeSantis is right to call out the Fed. And honesty compels one to acknowledge the Fed’s failures, even if those failures are pointed out by politicians of whom one disapproves. Anything less subjects responsible policy analysis to rank partisanship.” ~ Alexander William Salter


The Fed Is Bankrupt

– April 14, 2023

“The most recent data show that the Fed owes the Treasury over $41 billion, which exceeds its total capital. The Fed, by common standards, is indeed insolvent.” ~ Thomas L. Hogan


Interest Rates, the Money Supply, and Say’s Law

– April 13, 2023

“Say’s Law absolutely helps us understand booms and busts on the demand side, but because of its emphasis on money, not interest rates.” ~ Alexander William Salter


Have We Crested the Inflation Wave?

– April 7, 2023

“My view is the Fed should pause its rate hikes in the short-run. Disintermediation might be the cause of recent money-supply trends. In the long-run, the Fed should resume forward guidance, but not on interest rates.” ~ Alexander William Salter


Silicon Valley Bank: Mismanagement Is Not an Excuse for Inefficient Regulation

– April 3, 2023

“The mismanagement was endogenous to the regulatory regime. Rather than promoting financial stability, regulators have undermined it. Doubling down on a failed strategy will not make things better.” ~ Nicolás Cachanosky