Nicolas Cachanosky interviewed at Reinvent.Money

– February 17, 2016

This week, Sound Money Project fellow Nicolas Cachanosky appeared in an episode of Reinvent.Money and discusses free banking vs. central banking, competing currencies, property rights and his involvement with the Sound Money Project. Watch the intervie …


Expectations under growth and level targeting regimes

– February 9, 2016

Under a level target, one can reasonably predict the level of nominal income at any point in the future. The same cannot be said for a nominal income growth target.


Steve Forbes speaks out on the Presidential race, Fed recklessness, and gold

– February 4, 2016

The following is an exclusive interview with Mike Gleason, Director of Money Metals Exchange and originally appeared on the Money Metals Exchange page. To listen to the interview, click here.  Mike Gleason, Director, Money Meta …


Austrian business cycle theory and monetary equilibrium

– February 3, 2016

As Steve Horwitz has shown, the insights of Austrian macroeconomics and monetary disequilibrium theory can be combined to yield a powerful paradigm for understanding how monetary policy affects the economy.  Crucial to this synthesis is the neutrality …


Central banks and foreign exchange markets

– February 1, 2016

In addition to turmoil in common stock markets around the world, the early weeks of the new year have been characterized by changes in—and much hand wringing about—exchange rates between currencies. Prospects for changes in currency exchange rates were …


Economic headwinds: Big players, regime uncertainty and the Misery Index

– January 29, 2016

Before we delve into the economic prospects for 2016, let’s take a look at the economies in the Americas, Asia, Europe and the Middle East/Africa to see how they fared in the 2014-15 period. A clear metric for doing this is the misery index. For any co …


Sound money isn’t what you think it is

– January 28, 2016

Many people define sound money as being when a currency’s purchasing power is not declining, but stable. This isn’t quite right, so let’s drill down. Consider two relentless processes occurring in the economy. They are both happening at all times, but …


What Austrian business cycle theory does not predict

– January 13, 2016

Many economists who have broadly free market views on money are sympathetic to the Austrian theory of the business cycle (ABCT).  As developed in the early part of the 20th century by Ludwig von Mises and Friedrich Hayek, and further refined in recent …


Juan C. Cachanosky (1953 – 2015): See you on our next morning walk

– January 11, 2016

These are likely the most difficult lines that I have had to write in a very long time, if not ever. Juan Carlos Cachanosky, my dad, passed prematurely on December 31st, 2015, at the young age of 62. Frank Sinatra was probably his favorite singer, and …


Taylor, Sumner and Selgin at the Cato Monetary Conference

– January 7, 2016

In this post I want to briefly comment on three points raised by J. B. Taylor, George Selgin, and Scott Sumner. Though these points have been raised before in the literature, they are certainly worth reviewing. J. B. Taylor delivered his lecture on the …


The value of our money

– December 22, 2015

The purchasing power of money over time depends on its relative abundance or scarcity. People choose to hold money balances for a variety of reasons, all of which economists lump together as “the demand for money.” It is crucially important that this i …


The long run benefits of a monetary policy rule

– December 21, 2015

When teaching undergraduates or talking with non-economists, I usually argue that, while the Fed can affect aggregate demand (or nominal spending), it has no effect whatsoever on aggregate supply. If economic output declines because productivity growth …