Sound Money

Wednesday, July 17th, 2019

A government money monopoly, writes Judy Shelton, "invites a more sinister abuse of government power - even tyranny - as government precludes market entry to alternative issuers."

Monday, July 1st, 2019

As an introduction to the topics that will be dealt with in the AIER Graduate Colloquium, over the next few weeks Joakim Book will summarize the core readings that our students are currently reading to prepare for a good discussion at the event.

Monday, June 24th, 2019

The Libra has the potential to mark the start of something because if widely used, it will open the eyes of the global population to a truth about money: it works best when its value is stable, plus it needn’t be a government creation. 

Tuesday, June 18th, 2019

Cryptocurrencies are a different sort of financial technology from bank deposits, yet they are being shoehorned into the same category for regulatory purposes.

Monday, June 17th, 2019

Let’s hope other Argentinian economists give this proposal serious consideration.

Saturday, June 15th, 2019

Facebook's Libra is easily and probably rightly criticized by crypto purists as a halfway house that makes too many concessions to legacy systems and plays too nicely with the existing regulatory system. All true. But that’s not where the story ends.

Wednesday, June 12th, 2019

If the binding zero lower bound did not prolong the last recession, it may not prolong the next.

Thursday, June 6th, 2019

The origin of money, the history of central banks, the operation and destruction of the gold standard, the rise of inflation and massive government debt, the disastrous bailouts of 2008 – it's all covered in an outstanding hour-long documentary appearing on PBS stations called In Money We Trust.

Tuesday, June 4th, 2019

The greatest risk to the US dollar may, in fact, come from within. The imposition of tariffs and sanctions create an opportunity for other countries to engage in bilateral trade. The decision to withdraw from the free trade initiatives such as the TPP and T-TIP weakens not only the prospects for US trade but also the preeminent position of the US dollar.

Tuesday, May 28th, 2019

A new type of financial institution could take root in the U.S. But the Federal Reserve seems determined to prevent this from happening.

Tuesday, April 9th, 2019

Pretty much every economics textbook explains how money has four functions. It is first and foremost a medium of exchange, and it ultimately derives all of its other functions from its usefulness as a medium of exchange.

Friday, January 11th, 2019

Technology rarely does what we hope or predict it will do. In a year of falling exchange rates and failed ICOs, Facebook’s co-option of blockchain technology might be the best news for the industry of 2018.

Monday, October 15th, 2018

Under ideal conditions, stablecoins would come to exist due to pure market demand rather than as a reflection of the regulatory climate that has limited access to conventional banking services.

Tuesday, September 25th, 2018

For both social contract theory and monetary theory, theorists are considering something that never happened in the past and that they have no reason to believe will happen in the future. No such considerations are useful.

Friday, August 24th, 2018

Right now, we have a disordered and dysfunctional money system. This poses very acute risks and dangers that because of the nature or money can have system-wide effects. We should look at how monetary systems have been reformed in previous times, and also rethink the way money is commonly taught and thought about.

Wednesday, August 15th, 2018

What we’ve learned is that money can be privately produced. Hayek’s dream of choice in currency can be reality. What form it will take in the future no one can know for sure. What’s more, there is no end game here. The process of innovation will never stop. 

Wednesday, August 15th, 2018

The features of monetary institutions that make them illiberal have a high likelihood of making them undemocratic as well.

Tuesday, June 26th, 2018

The complexity of credit markets creates difficulty for teaching monetary theory purely through reference to observed data. An appropriate framing should follow the evolution of money and credit.

Thursday, June 7th, 2018

The third issue of the AIER Sound Money Project Working Paper Series is available online. AIER is currently ranked 76th on SSRN's Top 1,600 Entrepreneurship Research & Policy Network Organizations.

Friday, May 11th, 2018

A decade ago, I was a fractional-reserve banking skeptic. Today, I’m all for it. Here’s why.