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. The Sound Money Project also hosts an annual essay contest. 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: Gerald P. DwyerJoshua R. Hendrickson
Fellows: Scott A. Burns, James L. Caton, Nicolás Cachanosky, Judge GlockAlexander W. Salter
Contributors: Brian C. Albrecht, J.P. Koning

Sunday, May 27th, 2018

The equation of exchange provides building blocks for understanding the dynamics of the market for money.

Saturday, May 26th, 2018

Keeping the consumer price level stable in the presence of productivity gains does not mean inflation disappears.

Tuesday, May 22nd, 2018

The once-dead Phillips curve has come back to life. But its underlying argument is still dead wrong.

Monday, May 21st, 2018

Rule-of-law monetary systems are more ethically justifiable. They also work better.

Friday, May 18th, 2018

Monetary theory is beautifully simple. The fundamental principle of economization underlies decisions to hold money or goods and what form of money to hold.

Thursday, May 17th, 2018

Many models in macroeconomics ignore money. A new paper by Ricardo Lagos and Shengxing Zhang suggests that is a mistake.

Wednesday, May 16th, 2018

Can stablecoins compete with existing government currencies?

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.