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.
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The Renewed Politicization of the Federal Reserve
“Central bank independence can only be maintained by focusing on the narrow goals assigned by Congress. By straying from its mandate, Fed officials have chosen to base their decisions on politics rather than on sound economics.” ~ Thomas L. Hogan
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Lisa Cook is Unqualified for the Federal Reserve Board
“It’s time to end mandate drift once and for all. We need qualified nominees who understand the proper role of monetary policy. Unfortunately, Dr. Cook falls short on both counts.” ~ Alexander William Salter
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The Fed is Responsible for Great Inflations
“It’s time the Fed accepts responsibility and moves decisively to curb inflation before the problem gets even worse. Volcker’s Fed whipped inflation, and Powell’s Fed can, too.” ~ Nicholas Curott & Tyler A. Watts
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Prices Continue to Rise, Exceeding Fed Projections
“The Fed seems resolved to see inflation climb further. I expect FOMC members will revise up their projections of inflation again in June. They should revise their course of action, to bring inflation down as planned, instead.” ~ William J. Luther
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Asymmetric Average Inflation Targeting and Expectations
“A conventional average inflation target would have anchored expectations and reduced the inflation risk of long-term contracting, promoting economic growth in the process. An asymmetric average inflation target falls far short of that goal.” ~ William J. Luther
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Supply Disturbances Do Not Explain High Inflation
“Unfortunately for the administration, their politically-convenient supply-side stories explain far too little. Today’s inflation is primarily the result of excessive nominal spending, which the Fed could have and should have offset.” ~ William J. Luther
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Mandate Drift at the Fed Is Par for the Course
“We must decide, so long as we have a central bank, what we want it to do. The best feasible reforms tighten the Fed’s leash. A constrained Fed is a competent Fed. A drifting Fed is a danger to the public.” ~ Alexander William Salter
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The Everyman’s Economics Book We’ve Been Waiting For
“Economics is indeed universal: While it might not say everything about something, it says something about everything. Thanks to Hennessey, many more people will know it.” ~ Alexander William Salter
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Why the Money Supply Should (Sometimes) Change
“In the long run, the money supply isn’t that important. But in the short- to medium-run, it’s pretty important. There are good reasons for the money supply to change.” ~ Alexander William Salter
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Has the Fed Abandoned Its Average Inflation Target?
“Despite affirmations to the contrary, the Fed appears to have abandoned its average inflation target. Excessive nominal spending has pushed prices well above the level consistent with the Fed’s average inflation target.” ~ William J. Luther
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Crypto’s Privacy/Commingling Dilemma
“Mixing is a less-than ideal way to gain privacy. In solving for privacy, mixing introduces another problem; commingling. When you use a mixing tool, you’re introducing your licit funds into the same pot as potentially criminally-derived funds.” ~ J.P. Koning
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Who Needs the Dual Mandate?
“The American public understands inflation and policymakers have a reasonable degree of control over it. When choosing a policy rule, we need humility first and foremost. Let’s stop asking the Fed for more than it can deliver.” ~ Alexander William Salter
