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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Inflation and Consumer Welfare: Don’t Forget the Supply Side!
“Let’s keep our eye on the supply side. We should be making every effort, policy-wise, to ease restrictions on production and exchange. That will help both in the short run and the long run.” ~ Alexander W. Salter
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Assessing Market Expectations of Inflation
“Those denying any risk that inflation will remain above target or confidently predicting that 4 percent inflation will be the new normal, are not within the range of reasonable. They are rightly ridiculed.” ~ William J. Luther
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Is Larry Summers Channeling Benjamin Anderson?
“The post-2008 framework has incentivized the destabilization of monetary policy. The sooner we recognize this fact, the sooner we can seriously discuss a solution to the problem.” ~ James L. Caton
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Is Inflation Above the Fed’s Target?
“A credible Fed would anchor expectations to its target growth path. Unfortunately, the Fed has not been credible in the past. That leaves us with a much more difficult question today: what should the Fed do when it hasn’t done what it should have done?” ~ William J. Luther
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The Federal Reserve Is Not Credible
“Having persistently undershot its inflation target for nearly a decade, the Fed now looks poised to err in the opposite direction.” ~ William J. Luther
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Fast Payments Enable Lightning Kidnappings in Brazil
“The only way that the Banco Central do Brasil could completely end PIX-based lightning kidnapping would be to slow the entire system down. That would mean cutting regular Brazilians off completely from the benefits of real-time payments.” ~ J.P. Koning
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Trouble Transacting with Bitcoin
“Problems with bitcoin’s design––including its suboptimal supply constraint and limited transactions capacity––cast doubt on the claim that bitcoin is superior to the monies widely used at present.” ~ William J. Luther
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How the Fed Can Improve Financial Stability and Reduce Inequality
“There is clear evidence that bank deregulation can improve financial stability while also shrinking inequality. By lowering the costs of doing business, strong but simple regulations improve job opportunities for low-skilled and minority workers.” ~ Thomas L. Hogan & Amelia Janaskie
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What’s Wrong With Bitcoin’s Supply Mechanism?
“Bitcoin’s supply mechanism fails to provide a long-run nominal anchor or promote monetary stability. A better money would employ a supply mechanism that offsets changes in the demand to hold it.” ~ William J. Luther
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Was the OnlyFans Ban a Symptom of Creeping Financial Censorship?
“It is unfortunate that OnlyFans content creators were nearly deplatformed. However, it seems to be a local incident, and not indicative of a global decline in accessibility to payments.” ~ J.P. Koning
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Government Opposition to Bitcoin
“Government obstacles to widespread adoption take many forms, from mere transaction policy to outright bans on alternatives while providing close substitutes in the form of central bank digital currencies.” ~ William J. Luther
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Bitcoin and the Network Effects Problem
“There are steps entrepreneurs can take to help reduce the network effects problem. It is, nonetheless, an obstacle bitcoin must overcome to achieve widespread adoption.” ~ William J. Luther
