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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Who’s Winning the Race for Real-Time Payments?
“The extent to which the Federal Reserve will take measures to hold back TCH-RTP’s growth was not yet clear (and maybe it still isn’t). Institutions may be hedging their bets or testing both systems.” ~Nicolás Cachanosky
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Inflation: It’s Not the Supply Side
” Some combination of fiscal and monetary policy remains the best explanation for the once-in-a-generation inflation rates that peaked in summer 2022, as well as their gradual decline.” ~Alexander W. Salter
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Inflation Undershoots Fed Projections
“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther
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FOMC Holds Rates, Revises Projections
“After months of worrying that they had not yet done enough, FOMC members now seem to think they have a handle on inflation and will see it gradually return to 2 percent. Let’s hope they are correct.” ~William J. Luther
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Despite CPI Uptick, Monetary Policy Remains Tight
“The slight bump in inflation won’t spook them into going even tighter. And despite the cries from financial markets, it’s too early to contemplate cuts.” ~Alexander W. Salter
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Disinflation Dream Come True
“The Fed will probably keep the fed funds target range unchanged in December. Officials previously signaled additional tightening, but things have changed.” ~Alexander W. Salter
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Hyperinflation and Dollarization: A Path to Economic Stability for Argentina
“The risk of hyperinflation in Argentina does not arise from the intention to dollarize but from a central bank that appears incapable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent.” ~Nicolas Cachanosky
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The Fed Delivered Disinflation
“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~Alexander W. Salter
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The FOMC Was Right to Not Hike
“The best approach for the FOMC is to keep its rate target where it is. We should wait for additional inflation data in November before calling for even-tighter monetary policy.” ~Alexander W. Salter
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Inflation Remains High in September
“The Fed should keep monetary policy tight as inflation returns to its 2-percent target. But if it tightens too much, it will push the economy into an unnecessary and painful recession.” ~William J. Luther
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Alan Blinder: Let Them Eat Disinflation
“Blinder thinks deflation always and everywhere causes economic harm. ‘It takes a truly sick economy to cause deflation,’ he warns. But he’s wrong.” ~Alexander W. Salter
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The IMF is Wrong – and Right – About Crypto
“The IMF and FSB’s recommendations are transparently pro-government and anti-citizen. They overstate the potential harm of cryptocurrencies and propose monitoring systems that would benefit tyrannical governments at the expense of the public.” ~Thomas L. Hogan
