In general, I prefer a rules-based monetary policy to discretion, but not all rules are created equally. Today, I want to consider two types of nominal income targeting rules in the hopes of identifying their relative merits for anchoring long run expectations, enabling long run and thereby promoting long run economic growth. 1) Nominal Income […]Read More
Milton Friedman famously declared that inflation is always and everywhere a monetary phenomenon. While that no doubt remains a universal principle, it is not the same (as some people think) that inflation is a central bank phenomenon. Certainly, before central banks were created by governments there was inflation when Spanish galleons returned from the new world […]Read More
Ultimately, an economy can only sustain itself if it produces more than it consumes. That’s a lesson that the Soviet Union learned the hard way decades ago, explains Atlas Network Sound Money Project Senior Fellow Jerry Jordan in a column for Forbes, but Greece seems determined to continue its high levels of spending and consumption at […]Read More
A hard currency backed by specie like gold or silver imposes sound economic policies on the nations that use them, but currency established by central bank fiat requires sound policies to be established by political mechanisms in concert with the support of the electorate. In the case of the stagnation in Greece, the European Union […]Read More
During the 2008 financial crisis, many banks became illiquid and did not have enough cash reserves to pay their debts. The Fed responded to the liquidity shortage by paying banks to hold more reserves. The policy of paying interest on reserves (IOR) is intended to make banks safer, but can higher reserves actually increase risk? […]Read More
Most of the team of the Atlas Sound Money Project attended the Cato Institute Monetary Conference. Dr. Judy Shelton, co-director of the project spoke on “Building an Orderly and Ethical International Monetary System,” Senior fellow, Dr. Jerry L. Jordan, who knows more than any other person I know how the Fed interacts with banks spoke on “The Role of Gold in a Market-Based Monetary System” and former Atlas trustee Dr. Gerald P. O’Driscoll Jr. presented a paper on “Monetary Reform: Process and Substance.”
Several members of the Sound Money Project team, including talented young academics Nicolás Cachanosky, winner of the 2nd Prize in the Mont Pelerin Society Hayek Essay contest, William Luther (Kenyon College), Thomas Hogan (Troy University, and Gonzalo Schwarz (Atlas Network) were able to network and strategize about how best to embark on the road to sound money.
Congratulations and gratitude to James A. Dorn, George Selgin, John Allison, and others for the outstanding conference.