Topic: Sound Money Project


Op-ed: Status quo on housing finance keeps failed system in place

– April 21, 2015

The following is an excerpt from a piece by Norbert Michel that was originally published by Forbes. The status quo. It’s a powerful force in Washington, D.C. No matter how destructive or inefficient an existing program, institution or system may be, it …


The Taylor Rule and the natural rate of interest

– April 20, 2015

A few weeks ago I commented on whether or not the Market Monetarist position that a 5% growth rate of NGDP (before the subprime crisis) could have been too much. The main point was that other nominal variables did not behave in accordance to what would …


Tax Day targets currency

– April 15, 2015

Today is Tax Day. Across the country, individuals are scrambling to file their tax returns, enjoying discounts from various restaurant chains and (if they’re libertarians) posting lengthy Facebook statuses that outline why taxation is theft. While it’s …


Sound money macro: A follow up

– April 13, 2015

Changes in the price level driven by productivity provide valuable information over time. Trying to offset such changes requires a costly adjustment of prices with no offsetting benefit in terms of the degree to which prices convey information about relative scarcity.


Cato launches new blog: Alt-M

– April 9, 2015

Earlier today, George Selgin, Director of the Cato Institute’s Center for Monetary and Financial Alternatives announced the launch of the Center’s new blog, “Alt-M.” We at the Sound Money Project are excited to continue to work with Dr. Selgin and his …


Wars and the pre-Fed economy

– April 8, 2015

Many economists assume that the Fed has improved U.S. economic performance relative to the pre-Fed periods. As I discussed in a previous blog post, however, the Fed has been better on some margins and worse on others. Most improvements under the Fed ha …


The great stagnation

– April 6, 2015

Ben Bernanke, now at Brookings Institute, has a new blog where he has been discussing low interest rates and the problem of secular stagnation. Great stagnation occurs when there are plenty of savings, but not investment options. Therefore, savings are …


The monetary approach reigns supreme

– April 3, 2015

This article appeared in the April 2015 issue of Globe Asia.  We are still in the grip of the Great Recession. Economic growth remains anemic and below its trend rate in most parts of the world. And what’s more, this state of subdued economic activity …


Hidden costs of Federal Deposit Insurance

– April 1, 2015

Before concluding that government-provided deposit insurances is a good deal, one should consider all of the costs and benefits relative to the relevant alternatives.


Managed money ≠ sound money

– March 30, 2015

When asked (especially during Congressional oversight hearings) a central banker will resolutely declare a belief in “price stability.” Then, with a straight face, express concerns that the rate of increase of consumer prices is below target! The belie …


Op-ed: Losing patience with the Fed

– March 19, 2015

It comes perhaps as no surprise that yesterday’s meeting of the ten voting members of the Federal Open Market Committee (FOMC) ended in an anti-climactic manner, providing no real clarity about the future of interest rates at the Federal Reserve. The r …


Deposit insurance and monetary stability

– March 18, 2015

Government deposit insurance from the Federal Deposit Insurance Corporation (FDIC) is intended to stabilize the financial system by preventing bank runs and financial contagion.