Sound Money Project

  • Beware of Conflict Theories of Inflation

    “This perspective emphasizes that social conflicts are the central cause of inflationary pressures. The Marxist undertones of CTIs suggest that inflation results from social injustice, implying a moral imperative for government intervention to right the supposed wrongs.” ~Nicolás Cachanosky

    Beware of Conflict Theories of Inflation
  • Milei’s New Monetary Regime for Argentina

    “Despite its controversial nature, full dollarization remains the monetary regime with the most potential for long-term stability in Argentina. It offers a credible pathway to restore confidence and put the country back on a sustainable economic trajectory.” ~Nicolás Cachanosky

    Milei’s New Monetary Regime for Argentina
  • Milei’s New Monetary Regime for Argentina

    “Despite its controversial nature, full dollarization remains the monetary regime with the most potential for long-term stability in Argentina. It offers a credible pathway to restore confidence and put the country back on a sustainable economic trajectory.” ~Nicolás Cachanosky

    Milei’s New Monetary Regime for Argentina
  • Consumer Prices Decline in June

    “Interest rates tell us monetary policy is very tight. The money supply tells us monetary policy is somewhat tight. Will the Fed interpret recent data as a signal it’s time to pivot?” ~Alexander W. Salter

    Consumer Prices Decline in June
  • Prices Decline in May, Monetary Policy Tightens

    “Prices today are 8.9 percentage points higher than they would have been had the Fed hit its 2-percent inflation target since January 2020.”

    Prices Decline in May, Monetary Policy Tightens
  • FOMC Holds Rates, Revises Forward Guidance

    “Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther

    FOMC Holds Rates, Revises Forward Guidance
  • Prices Stable in May: Time to Cut Rates?

    “M2, the most commonly cited measure of the money supply, is up 0.53 percent from a year ago. Since real income and population are growing faster than this, current M2 growth also suggests money is tight. But this is speculative.” ~Alexander W. Salter

    Prices Stable in May: Time to Cut Rates?
  • Inflation Continued to Decline in April

    “While inflation is declining once more, members of the Federal Open Market Committee (FOMC) have suggested rates would need to remain high for longer than they had previously projected.” ~William J. Luther

    Inflation Continued to Decline in April
  • Is The Fed Manipulating the Market?

    “We cannot just look at the Fed’s target rate to determine whether it is manipulating the market. We must consider its target rate relative to the natural rate.” ~Bryan Cutsinger

    Is The Fed Manipulating the Market?
  • Chairman Powell and The Fed’s Limits

    “Congress should applaud Chairman Powell’s candor on uncertainty and strongly support his principle of operating the Fed within the limits of its mandate.” ~Alex J. Pollock

    Chairman Powell and The Fed’s Limits
  • Inflation Declined in March, But Remains High

    “Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther

    Inflation Declined in March, But Remains High
  • A Better Model Won’t Fix The Fed

    “The whole point of expectations-responsive monetary policy is to remove the discretionary and technocratic elements from central banking. Disappointingly but unsurprisingly, the Fed is doing the opposite: doubling down on discretion and technocracy.” ~Alexander W. Salter

    A Better Model Won’t Fix The Fed