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. For the latest on sound money issues, subscribe to our working paper series and follow along on Twitter or Facebook.

Advisory Board: Steve H. Hanke, Jerry L. Jordan, Lawrence H. White
Director: William J. Luther
Senior Fellows: Nicolás Cachanosky, Gerald P. DwyerJoshua R. Hendrickson, Thomas L. Hogan, Gerald P. O’Driscoll, Jr., Alexander W. Salter
Fellows: James L. Caton, J.P. Koning

Nigeria’s Cash Tax Is a Bad Idea

– October 22, 2019

Nigeria is one of Africa’s most influential nations. But other African countries should think twice before emulating its costly cash policy.


The Fed Should Not Paper Over the President’s Policy Errors

– October 11, 2019

Printing money cannot dry up a flood or produce more rainfall in a drought. And it cannot fix the very real problems that result from a trade war.


Federal Reserve’s “Independence” Masquerade

– October 10, 2019

Chairman Powell’s ideal operating environment most likely looks the same as every other Fed chair’s operating environment: one where the Fed is left alone to treat the economy like a Lego set.


The Most Dangerous Idea in Central Banking

– October 1, 2019

Progressives like Yglesias recognize the danger of money in politics. They should consider the danger of politics in money, as well. And not just when it suits their interests.

Libra currency

Does Libra Threaten Monetary Sovereignty?

– September 29, 2019

There is no inherent reason that a global payments system run by technology companies must elide national regulations. If PayPal manages to serve a global community while complying with the rules of all the countries in which it operates, can’t Libra do the same?

Federal Reserve

The Fed’s Program of Two-Stage Sterilization

– September 25, 2019

In the first stage, it removes a significant amount of base money from circulation by paying interest on excess reserves. In the second stage, it manipulates other accounts at the Federal Reserve that influence the quantity of base money in circulation.


The Economics of Seigniorage on Excess Reserves

– September 21, 2019

The greater the unwinding of the balance sheet, the greater will be the difficulty of servicing federal debt. This problem is on the horizon. It will be met by a combination of dollar devaluation, reduction of the budget, or default.

Negative INterest Rate

Negative Interest Rate Policy and the Federal Debt

– September 20, 2019

If President Trump wants to lower the real cost of government debt, he should urge the Federal Reserve to increase nominal interest rates — not decrease them.


Don’t Say Unbanked; Say Differently Banked

– September 18, 2019

Prepaid debit cards issued by retailers like Walmart, the federal government, and banks like Green Dot and Comerica are providing unbanked Americans with a different but fully functional and cost-effective connection to the national payments system.


What’s the Right Inflation Rate?

– September 5, 2019

There is nothing magical about a 2% inflation target. Recognizing that is a much-needed first step toward better Fed policy.


Who Should Provide Central Bank Digital Currency?

– September 1, 2019

I can think of just one reason why a central bank might want to get into the business of issuing digital currency: to provide privacy. Regulations prevent that. 


Is It True That the Government Can Spend Before Taxing?

– August 30, 2019

Whether the renegade claim is true depends on how you choose to define the word “government.”