Sound Money

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.

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.

Thursday, May 3rd, 2018

A market economy without money would not be able to achieve a division of labor sufficient to make it worthwhile.

Wednesday, May 2nd, 2018

Hayek’s commodity reserve standard would automatically serve to stabilize prices and output. In our discussion of rule-based monetary policy and sound money, the mechanics and principles guiding Hayek’s proposal deserve careful consideration.

Wednesday, April 18th, 2018

Requiring that citizens track transactions in gold or alternative currencies and pay taxes on gains and losses relative to the dollar is just another mechanism for keeping the monetary playing field unbalanced in favor of government fiat.

Wednesday, April 18th, 2018

If the language of commerce is quid pro quo, money is its grammar.

Monday, April 9th, 2018

The personal signature has a notorious history: J.S. Bach’s on his compositions, the founding fathers on the Declaration of Independence, Picasso on his paintings, and the president’s today on executive orders. Creating your own was a right of passage. With credit card companies admitting the obvious that it does nothing to verify your identity, does it matter anymore? The signature isn’t going away. It has just changed forms.

Tuesday, March 27th, 2018

The first two issues of the new AIER Sound Money Project Working Paper Series are available online.

Friday, March 23rd, 2018

Debasement helps the mint defend against an aggressive counterfeiter.

Thursday, March 1st, 2018

Financial regulators ought not inhibit private money creation processes, which make the market more resilient in times of crisis.

Wednesday, January 31st, 2018

Financial crises come in all shapes and sizes. What could we possibly learn about proper monetary policy?

Wednesday, January 10th, 2018

In many ways, we are better off than we were in the era of the international gold standard. But monetary freedom is not one of them.