Monday, 27 March 2017

Sound Money Blog

Rogoff on Seigniorage

January 11, 2017

In his book, The Curse of Cash, Harvard economist Ken Rogoff offers an excellent discussion of the modern seigniorage process: Instead of having the government print money and buy things directly, modern-day seigniorage is a three stage process. In stage one, the government spends beyond its means (its tax revenues) and issues interest-bearing debt to […]

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Sound money and banking

Posted by Thomas L. Hogan
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, […]

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Will the ECB save Greece?

Posted by Thomas L. Hogan
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 […]

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2014 Sound Money Rankings: the bottom of the list

Posted by Alex Chafuen
January 5, 2015

As several of the worse performing currencies are in countries where the government manipulates statistics and exchange rates, it is not easy to come up with a perfect ranking. Using the inflation rate is a good approximation. In Venezuela the official price inflation is over 60%. In Argentina statistics are so manipulated that it is […]

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Greenspan back to gold? Peter Schiff reports

Posted by Alex Chafuen
November 10, 2014

Peter Schiff writes “A couple weeks ago, we reported on Alan Greenspan’s prediction that the price of gold would rise. He said this at the New Orleans Investment Conference. In an interview at the Council on Foreign Relations (CFR) the next week, Greenspan commented even more on gold, though the CFR did not publish his […]

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Wall Street Journal describes the new Cato Institute effort to promote sound money

Posted by Alex Chafuen
October 22, 2014

The Wall Street Journal blog reports that Cato’s new Center for Monetary and Financial Alternatives will have as a goal to “challenge the central bank’s policies and explore alternative ways to manage the U.S. money supply, including but not limited to a return to the gold standard.” The new director, George Selgin, is an outstanding economist, with […]

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