Sound Banking
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The Fed Is Not Independent, But It Should Be
“To be an effective central bank, the Fed must strive to remain independent of short-term political influence. A strict separation of monetary and fiscal policies helps bolster central bank independence.” ~ Thomas L. Hogan
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Banking the Unbanked: Lessons from the Developing World
Access to financial services, or “financial inclusion,” has long been recognized as a critical step towards escaping poverty. Having a bank account enables people to protect their savings, diversify risk, lower […]
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Narrow Banks, Very Narrow Banks, and the Federal Reserve
A bank charter has been granted to The Narrow Bank in Connecticut. But the idea of narrow banking is not new.
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Sound Money Project Essay Contest
What are the merits of returning to the gold standard? Is such a system feasible today?
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The Costs of Dodd-Frank
The jury is still out on whether Dodd-Frank has made the financial system more robust. But we are starting to get a clearer picture of what impact it has had on compliance cost, bank lending, and bank consolidation.
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Going Postal
Some politicians are calling for the return of postal banking. Should we heed their call?
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Financial Inclusion: One Size Doesn’t Fit All
We can’t predict exactly what solutions will emerge from financial liberalization. The results will likely differ from country to country or region to region, depending on unique cultural and socio-economic factors.
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Why Are Many Households Unbanked?
A new NBER working paper raises doubts about the welfare gains from mobile banking.
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The WWI Agriculture Boom and Bust
A new NBER working paper uses bank-level financial and county-level agricultural data to show how risky lending might amplify the boom and bust.
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Government Guarantees and the Valuation of American Banks
Expectations of government bailouts drove the increase and decline of American banks’ market value to book value, according to a new NBER working paper.
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Base Money and the Birth and Use of Credit Money
The complexity of credit markets creates difficulty for teaching monetary theory purely through reference to observed data. An appropriate framing should follow the evolution of money and credit.
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Not All Crises Are Due to Unexpected Shocks
In the case of Argentina, three particular problems call into question the “surprise” explanation of the currency crisis.
