Thursday, 05 March 2015
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    Missing the mark

    Inflation targets and expectations

    February 25, 2015
    This month’s unemployment figures—which were much better than expected—prompted many to speculate that the Fed would begin raising its interest rate target in the near future. Some, including Vox’s Matt Yglesias, object to such a policy on the grounds that inflation remains below the Fed’s stated goal of 2 percent. There’s no denying that inflation […]
    Bitcoins

    Dark dollar dealings

    February 24, 2015
    With the conviction of Ross William Ulbricbht, founder of Silk Road, many proponents of bitcoin and other crypto-currencies fear that the government “might bolster efforts to regulate — and perhaps even ban the emerging cryptocurrency.” In an Op-Ed published by US News and World Report, William J. Luther of the Sound Money Project says that’s not how […]
    The sign of a Bank

    Sound money and banking

    February 23, 2015
    What role does banking play in a theory of sound money? Banks in the United States are regulated by several agencies, especially the Fed. But should the Fed really regulate the banking system? Can the Fed effectively regulate the banking system? Regulators claim central banks have always run the banking system. Ben Bernanke, for example, […]
    Currency Exchange Rates Board

    Money and exchange rates

    February 18, 2015
    The new year started with much media attention to exchange rates between currencies of some countries versus their trading partners. The Swiss got things started by announcing an end to the artificial peg of their currency—francs—and euros. The consequent dramatic rise in the exchange rate between francs and euros caused sudden and often very large […]
    isflc1

    Sound Money Project at ISFLC

    February 11, 2015
    The Sound Money Project would like to invite you to join William Luther and Johannes Schmidt of the Sound Money Project along with George Selgin of the Cato Institute and Lawrence White of George Mason University at the International Students for Liberty Conference in Washington, DC for a panel on monetary policy in the 21st Century. Details can […]
    Many percent or percentage signs to illustrate interest rates or return on investment

    No, the interest rate is not the price of money

    February 9, 2015
    The notion that the interest rate is the price of money is seriously misled. As I move forward with my lectures on the Keynesian system, this is something that I want to make clear to my students. Certainly, when evaluating the Keynesian model, we need to understand what the model says (and what it does not […]
    Greek debt

    Greek crisis creates standoff between regulators and potential investors

    February 4, 2015
    This week, Yanis Varoufakis, Greek Minister of Finance, stoked the fire that has been spreading across Europe since the Syriza victory in Greece with bold rhetoric that labeled the ECB’s threats to cut funding for Greek banks as political intimidation and promised to continue to move forward with his party’s anti-austerity revolution. The EU-IMF troika […]
    Greek Crash

    Will the ECB save Greece?

    February 2, 2015
    Following its recent elections, the government of Greece has requested a “haircut” or reduction in the interest rate it must pay on the 320 billion euros in debt it owes to the European Central Bank (ECB). Greek banks have also asked the ECB for a bailout which, for the moment, it is denying. Much of […]