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. Dwyer, Joshua R. Hendrickson, Thomas L. Hogan, Gerald P. O’Driscoll, Jr., Alexander W. Salter
Fellows: James L. Caton, J.P. Koning
Powell’s New Monetary Regime
Fed Chair Jerome Powell has suggested that Federal Reserve policy might not tighten as much as anticipated. He has also changed the regime that dominated the last decade of monetary policy.
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Rothbard’s Improper Diagnosis
Money creation was far from excessive in the 1920s. More significant factors leading to the Great Depression include the monetary contraction that began in 1929 and the French repatriation of gold that started in 1927.
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Monetary Policy and Constrained Discretion
The problem with constrained discretion is that it leaves up to central bankers the decision when to switch from rule-like behavior to discretionary behavior.
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Narrow Banks, Very Narrow Banks, and the Federal Reserve
A bank charter has been granted to The Narrow Bank in Connecticut. But the idea of narrow banking is not new.
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Inflation Targeting in Argentina: What Went Wrong?
To reduce inflation and keep the Argentine peso stable going forward, the Macri administration adopted an inflation-targeting regime. But, just 26 months after its implementation in September 2016, the inflation-targeting regime had failed. What went wrong?
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Are Financial Crises Driven By Supply Or Demand Shocks?
In a new NBER working paper, Felipe Benguria and Alan M. Taylor consider whether financial crises usually stem from the demand or supply side of the market.
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The Fed Wants to Close the Window on Narrow Banks
A new type of financial institution could take root in the U.S. But the Federal Reserve seems determined to prevent this from happening.
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Sound Money Project Essay Contest
What are the merits of returning to the gold standard? Is such a system feasible today?
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Did Tight Monetary Policy Result in a Sluggish Recovery?
Some claim that, over the last decade, tight monetary policy slowed down what would otherwise have been a rather speedy recovery. Can that possibly be right?
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Why did Bitcoin’s Price Increase by 24% in 90 minutes?
Volatility is to be expected for new media of exchange. But one should also be able to trace a lot of that volatility to news.
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Monetary Policy Rules Are Not Enough
A monetary rule would provide guidance and stability. But monetary rules are not incentive-compatible for monetary policy makers.
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The Costs of Dodd-Frank
The jury is still out on whether Dodd-Frank has made the financial system more robust. But we are starting to get a clearer picture of what impact it has had on compliance cost, bank lending, and bank consolidation.
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