Sound Money Project

Harper is right that bitcoin is volatile; that this volatility makes it less desirable to hold; and that its volatility will continue to decline as the demand for bitcoin increases. Nonetheless, concerns about its volatility are often overstated.

Last Tuesday, the 33rd annual Cato Monetary Conference was held at the Cato Institute in Washington, DC. There, brilliant minds met and presented on various interesting topics. I will briefly comment on some of them in another post, but for now would like to offer a short reflection on the first keynote address by James Bullard, President and…

Having a monetary constitution is important. But do we need a distinct monetary constitution? Steven Horwitz says no. Agreeing with James Buchanan that a monetary constitution is desirable, Horwitz argues that a general constitution that protects private property rights, provides for contract enforcement, and maintains the rule of law is also a monetary constitution, even…

Should banks adhere to the Real Bills Doctrine (RBD)? This is an old question that, from time to time, resurfaces. So what then is a real bill? A real bill is a bill that is backed by a real good. If I produce bread, for instance, then as a producer I can issue a bill…

Taking a look back at last week’s GOP debate, there is clearly room for much criticism of CNBC and the questions asked of the candidates. But, sound money advocates might concede that the moderators did get one thing right: monetary policy. According to an article published this morning in The Hill by Dr. Judy Shelton, Co-Director of the…

A few weeks ago I addressed the question, “Who Wants Sound Money?” Because my answer was that apparently everyone does, the next obvious question is: who should be responsible for assuring sound money? In the case of the US dollar, the original answer at the time of the founding of the country was the US…

There are at least two situations in which it would make sense for the Fed to raise its target rate.

My previous posts have been fairly positive towards the idea of a monetary constitution: a binding rule on monetary policy makers that these policy makers cannot change.  A monetary constitution is particularly appealing for those who desire monetary affairs to be brought under the rule of law.  But there is one problem with monetary constitutions that…

Well, apparently everyone does. An often misunderstood postulate in economics is known as “Gresham’s Law.” The popular version is that “bad money drives out good money.” Historically, what this has meant is that the bad money is what circulates in the market place, while the good money does not circulate. The reason is obvious; people…

The following is a newly released paper by Dr. Thomas Hogan, former Sound Money Project fellow and current Chief Economist for the U.S. Senate Committee on Banking, Housing, & Urban Affairs. Risk and Risk-Based Capital of U.S. Bank Holding Companies Thomas L. Hogan Troy University Neil R. Meredith West Texas A&M University; American Economic Association October 6, 2015 Journal of…

This piece originally appeared in The Wall Street Journal By Ben S. Bernanke For the first time in nearly a decade, the Federal Reserve is considering raising its target interest rate, which would end a long period of near-zero rates. Like the cessation of large-scale asset purchases in October 2014, that action will be an important…

In the field of monetary policy, there is one question that must necessarily be addressed: what should a central bank do in light of a financial bubble? Should it try to burst the bubble as soon as it arises or engage in damage control after a financial crisis occurs? Personally, I don’t think that there is…