Sound Money

Wednesday, August 2nd, 2017

In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in the context of the 2008 crisis.

Thursday, July 20th, 2017
Can you name an official at a major central bank who expresses worries that inflation is now, or soon will be, too high?  Can you identify any financial publication--even the Wall Street Journal--that does not report that recent inflation data have been "disappointing?" To paraphrase former Presiden
Tuesday, July 18th, 2017

Contra Mises, explicit coordination might be used to launch an intrinsically worthless item. Such a view is in line with standard models of money employed by economists today. Coordination also seems to have played a role in launching bitcoin.

Thursday, July 13th, 2017
Four misconceptions of the regression theorem, explained.
Tuesday, July 11th, 2017
A liberal society is governed by the principles of private property and freedom of contract, under the aegis of a nondiscriminatory rule of law.  In such a society, money enables economic actors to coordinate their activities. 
Monday, July 3rd, 2017

In the fall of 1974, AIER founder E.C. Harwood wrote a letter to President Gerald Ford.

Monday, June 19th, 2017
One feature of a liberal society is that its institutions, and especially its formal institutions with coercive backing, are bound by a nondiscriminatory rule of law, and work to protect the sanctity of property and contract for all persons.  In such a society, the general laws of property, contract
Wednesday, June 14th, 2017

The Panic of 1907, 110 years ago, was used to justify the creation of the Federal Reserve. From an economic perspective, the justification was a weak reed.

Monday, May 15th, 2017

It’s not systemic reform, but the Federal Reserve’s recent indication of climbing down from its $4.5 trillion balance sheet is being met with at least half smiles by free market economists.

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.
Thursday, March 23rd, 2017

In 2007, at the initiative of Chairman Ben Bernanke and New York Federal Reserve Bank President Timothy Geithner, the Federal Reserve System began a set of unprecedented credit allocation policies that have been wasteful, morally hazardous, studded with favoritism, and in some cases of dubious legality.

Tuesday, December 6th, 2016

AIER Trustee Walker Todd recently took note of this provocative piece from George Selgin, which argues that the Federal Reserve Bank’s actions since the Great Recession have done little good to boost the economy.

Tuesday, May 26th, 2015

Facing the Facts

How the federal government collects and spends money has changed substantially over the years. Policy decisions made many years ago influence federal outlays today in important ways. Because of changes in the structure of the budget, the annual appropriations process is constrained, and therefore, is a less powerful tool for addressing fiscal challenges than it used to be. 

Monday, January 5th, 2015
As several of the worse performing currencies are in countries where the government manipulates statistics and exchange rates, it is not easy to come up with a perfect ranking. Using the inflation rate is a good approximation.
Wednesday, October 22nd, 2014
The Wall Street Journal blog reports that Cato's new Center for Monetary and Financial Alternatives will have as a goal to "challenge the central bank
Friday, August 15th, 2014
Hayek on Sensible Monetary Policy
Tuesday, July 8th, 2014
Last month, Oklahoma Governor Mary Fallin signed Senate Bill 862 into law, once again recognizing gold and silver as legal tender and an acceptable means of payment of debts in the Sooner State.
Wednesday, July 2nd, 2014
Is there another financial meltdown on the horizon? Dr. Judy Shelton who co-directs the Atlas Sound Money Project surely believes so. In her latest article in The Hill Dr.
Wednesday, February 26th, 2014
Another brilliant piece by Judy Shelton: "As Ukrainians mourn their dead and vow to prosecute their recently deposed leader, the valor of those who died must now inspire others to build a new Ukraine worthy of their struggle and sacrifice.
Tuesday, February 18th, 2014

“As long as the government has the power to manufacture currency with simple paper st