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: 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 19th, 2017
In the late 1800s, three economists working independently radically transformed the way we think about value.
Wednesday, May 17th, 2017

Even when a policy is successful in achieving its desired ends, we have to consider its unintended and unforeseen consequences, resulting from cumulative market adjustments to policy changes that make it hard to judge the overall outcome of a policy in our complex economy.

Thursday, May 11th, 2017
My previous post was a crash course on the role of prices in a market economy.  Importantly, prices are money prices.  The vast majority of the time, producers accept the medium of exchange as payment for goo
Wednesday, May 10th, 2017
Cheap money becomes very expensive in the long run. In my new book, “Escape from the Central Bank Trap” (Business Expert Press), I explain that central banks are using the same inflationary policies that led us to the financial crisis.
Monday, May 8th, 2017
Our worldviews shape the ways in which we approach problems, challenges, and questions. Our “worldviews,” as I refer to them in this post, are so deeply embedded in our minds that we don’t usually realize our thoughts are driven by them. Monetary policy is not free from this “worldview” effect.
Monday, May 8th, 2017
In a recent post at FT, Sam Flemming documents growing concerns among some former Fed officials that the Fed “ri
Tuesday, April 11th, 2017
The Euro zone CPI data continues to show the rising trend we commented here (read). In January inflation rose by 1.8% year-on-year, the highest reading since February 2013.
Thursday, March 30th, 2017
A price is an exchange ratio: you must give up a certain amount of one good in order to get another good.  Barter economies have prices, which are expressed as ratios of the goods themselves.  In money-using economies, prices are expressed in the economy’s medium of exchange, which frequently makes
Monday, March 27th, 2017
In recent years, economists and central bankers have been advocating moving away from cash transactions towards an economy relying fully on financial transactions. At prima facie, this seems to be a good idea.
Wednesday, March 22nd, 2017

This is the fourth (and, perhaps, final) post on Ken Rogoff’s The Curse of Cash.

Monday, March 20th, 2017
This piece originally appeared in Hedgeye
Monday, March 13th, 2017
A basic tenet of macroeconomics and monetary economics is the difference between nominal variables and real variables. Nominal variables are expressed in current market prices. Real variables are adjusted to reflect the changing purchasing power of money over time (inflation or deflation).
Tuesday, March 7th, 2017
This piece originally appeared in Mises Institute
Thursday, March 2nd, 2017
The American economy is still in the doldrums.  It is growing and creating jobs at a snail’s pace compared to the years before the financial crisis.  There are several reasons for this.  But the actions of the Federal Reserve bear significant blame.  For now, the public’s anger at the Fed’s question
Tuesday, February 21st, 2017

The benefits of reducing crime by banning cash are lower than Rogoff implies.

Friday, February 17th, 2017
This piece originally appeared in The New York Sun
Tuesday, February 7th, 2017

This is the second of several posts on Ken Rogoff’s The Curse of Cash. In this post, I consider Rogoff’s estimate for the extent to which cash is used by criminals and tax cheats.

Monday, February 6th, 2017
This piece originally appeared in Learn LibertyBy Nicolás Cachanosky 
When you pay interest, what are you paying for?