Monday, 26 January 2015

Commentary

Sound money abroad: the Ecuadorian case

January 26, 2015

Sometimes sound money can be found abroad. Some countries, simply put, cannot or do not want to have reliable monetary institutions. Take the example of Argentina.Since the foundation of the central bank in 1935, the equivalent yearly inflation has been 55%. Venezuela is also experiencing very high inflation. When sound money cannot be found domestically, […]

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State of the Union 2015: President ignores monetary policy

January 21, 2015

Last night, President Obama confidently announced the end to the financial crisis, citing successful financial regulations and promising economic growth figures. That might not be the whole story, however. Almost unsurprisingly,  President Obama’s address made no mention of monetary policy. This is troubling because as the price of oil continues to fall, consumer price inflation […]

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Rules and directions

Posted by Thomas L. Hogan
January 14, 2015

Ben Bernanke once got lost on his way to a meeting in Washington, D.C. When Bernanke stopped to ask for directions, the exchange went something like this: Bernanke: I seem to be lost and was wondering if you could point me in the right direction. Stranger: Sure. Where are you headed? Bernanke: It doesn’t matter […]

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NGDP targeting: is five percent too much?

January 12, 2015

That’s the title of a new working paper that you can find here. The topic is closely related to a previous post that I wrote here at the Sound Money Project. In that post, I questioned the validity of NGDP targeting. Surely, there is no such thing as the perfect nominal indicator, however, as long as different variables have different […]

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Is the euro paper gold?

Posted by Jerry Jordan
January 8, 2015

Unlike paper money–fiat currencies created and issued by governments–the historic superiority of hard money–specie-backed, whether issued privately or by governments–is manifested in the imposed fiscal discipline. James Madison and other founding fathers of the US did not put the new country on a gold and silver standard because they were certain that specie-backed money was […]

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“The perils of monetary activism”

January 7, 2015

Investors are seemingly bemused as stock markets continue to underperform in the New Year after “racking up double-digit returns for 2014.” But if the last few years have taught us anything, it’s that positive growth and optimistic forecasting doesn’t necessarily mean that all is well with the economy. As Dr. Judy Shelton points out in her new […]

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