Sound Money Project

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. JordanGerald P. O’Driscoll, Jr., Lawrence H. White
Director: William J. Luther
Senior Fellows: Joshua R. Hendrickson
Fellows: Scott A. Burns, James L. Caton, Nicolás Cachanosky, Judge GlockAlexander W. Salter
Contributors: Brian C. Albrecht, J.P. Koning

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 10th, 2018

Sound money and the progress of civilization are inexorably entwined. Those who would sever this link for the perceived short-run benefits of monetary macro-management and fine-tuning should beware of the harm they court.

Wednesday, May 9th, 2018

Banknotes are useful. Not only do they provide their owner with a standard set of payments services, they also offer financial anonymity. How might a government price the anonymity component?

Sunday, May 6th, 2018

A distinction between theoretical and empirical price levels is useful for articulating why one might prefer a nominal-GDP-level target to a price-level target. 

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.

Tuesday, May 1st, 2018

A recent NBER paper calls into question the standard narrative of the financial crisis.

Monday, April 30th, 2018

In August, it will be 10 years since the Federal Reserve balance sheet exploded in size. How does it look now?

Monday, April 30th, 2018

The idea that a central bank might be constrained by rules is problematic. It merely moves the central bank's choices to the more abstract level of selecting and interpreting rules.

Saturday, April 28th, 2018

Economists bade farewell to Leland Yeager, one of the greatest monetary thinkers of the 20th century, earlier this week.

Friday, April 20th, 2018

Dividing the world into “centralized” and “decentralized” obscures important features of the bitcoin protocol. A more sophisticated lexicon would leave scope for “distributed” processes.

Friday, April 20th, 2018

Following the financial crisis and Great Recession, many bloggers (and some economists) have expressed disappointment with the state of macroeconomics. Randall Wright offers a more optimistic perspective.

Thursday, April 19th, 2018

Venezuela recently launched its own cryptocurrency. If recent history is any indicator, investors should steer clear.

Wednesday, April 18th, 2018

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

Tuesday, April 17th, 2018

The fact that Anderson’s theory of money seems to fail the Bitcoin test forces us to question our long tradition of issuing new coins that contain precious metals, or banknotes redeemable for some other, already valuable instrument.

Monday, April 16th, 2018

If macroeconomists do not want to take responsibility for crises, then they should refrain from endorsing unstable monetary institutions.

Tuesday, April 10th, 2018

A trade war would not only make the United States less productive. It would also make monetary policy more difficult.

Thursday, April 5th, 2018

In a recent Econometrica article, Matthias Doepke and Martin Schneider model money as a standardized unit of account.

Wednesday, April 4th, 2018

The inability of Hayek and other scholars to join forces against Keynes’s supposed innovations arguably contributed to Keynes’s victory among academics in the immediate post-war period.

Wednesday, April 4th, 2018

Through incentive and information problems, the Fed–rather than free markets–caused the 2007-8 financial crisis.

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