Monday, 26 January 2015
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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 […]
    Teenager Covering His Eyes

    Rules and directions

    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 […]
    Vector Goal Achievement Concept In Flat Style

    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 […]
    Euros

    Is the euro paper gold?

    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 […]
    Financial Crisis

    “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 […]
    Money Of The Different Countries.

    2014 Sound Money Rankings: the bottom of the list

    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 […]
    Silver handcuff and dollar bank notes

    “Bank capital punishment and other nostrums”

    December 31, 2014
    Across the globe, governments and their central banks have embarked on a witch hunt against bankers, imposing new capital requirements, regulations and even launching investigations against them. While policy makers need scapegoats to blame for the financial crisis of 2009, targeting bankers creates a problem as it “constrains the growth of money broadly defined.” This […]
    Canvassing In Ecuador

    Defending the dollar in Ecuador

    December 30, 2014
    This past August, Mary O’Grady made a claim in the Wall Street Journal that few people would argue against when she stated that “few economic injustices are more villainous than stealing from the poor.” Really, she was speaking about the devaluation of currency at the hands of governments and their central banks. As O’Grady notes, currency devaluation was […]