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.
“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
“While an increase in market power would certainly affect real income growth, the magnitude necessary to explain inflation is implausibly large.” ~ Bryan Cutsinger
“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
“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
“Monetary policy works with long and variable lags. Inflation is slowing, but it will take some time to come down. Fed officials should not be too concerned about elevated core inflation.” ~ William J. Luther
“By adopting a nominal spending target, the Fed would embrace a regime that provides clear guidance on the required spending level during times of crisis. This shift would enhance the Fed’s ability to navigate economic downturns effectively.” ~ Nicolás Cachanosky
“The price system worked exceptionally well precisely because the Fed had successfully established a credible nominal anchor. As a result, the economy could sustain a historically low unemployment rate.” ~ Bryan P. Cutsinger
“Dollar depreciation is why prices are rising. The Fed’s monetary policy, aided and abetted by the President’s and Congress’s massive deficits, are the real cause.” ~ Alexander W. Salter
“We are likely at the point where the risk of doing too much exceeds the risk of doing too little. It makes sense for the Fed to hold for now, and see how the incoming data looks over the next few months.” ~ William J. Luther
“The economic might of the United States is built on free enterprise. The assaults on private property and the rule of law by Washington insiders threaten the system on which our prosperity depends.” ~ Alexander W. Salter
“There’s no time to lose. Aspiring Republicans must get serious about fixing the Fed.” ~ Alexander W. Salter