Topic: Monetary Policy

The Experience of Free Banking

– July 21, 2010

“There was controversy over how much power the central bank should have and what it should try to do, but no respectable economist suggested that central banking itself was unnecessary or harmful until Hayek finally despaired of it in 1976 and began to …

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“Illinois Free Banking Experience”

– July 21, 2010

“Recent studies by Rolnick and Weber (1983, 1984) have presented evidence challenging the conventional view of the Free Banking Era (1837-1863). The conventional view depicts a period of financial chaos in which lenient regulations gave rise to a pleth …

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“New Evidence on the Free Banking Era”

– July 21, 2010

“The United States has experienced many periods of major banking panics during which a large number of banks have failed and financial markets have been in considerable disarray. The period consid-ered by many as the worst is the one period when banks …

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“Free Banking and Information Asymmetry”

– July 21, 2010

“A traditional argument against free banking is that it will collapse because of information externalities: it is impossible for depositors to tell whether a high deposit rate offered by a bank is due to its high efficiency or risky lending strategy. T …

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“Free Banking and Monetary Control”

– July 21, 2010

“Were free banking to reemerge today, it would probably be based, not on a gold standard, but on irredeemable paper (‘fiat’) base money issued by a former or extant central bank. Under this form of free banking, the price level is no longer given, and …

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“The Gold Standard: A Principled Case”

– July 20, 2010

“In recent months, we have witnessed fierce arguments between, on the one side, those who defend the current system of “fiat money,” in which, as John Maynard Keynes stated, money “is created and issued by the State, but is not convertible by law into …

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“Economic Recovery Slower Than Expected”

– July 14, 2010

“Federal Reserve leaders marked down their expectations for growth and inflation last month, concluding that the economic recovery is proceeding more slowly than they had thought in the spring but that the slowdown did not warrant new policy actions. B …

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Money and Banking: The American Experience

– July 14, 2010

The style of Money and Banking: The American Experience is one of article and comment. An author provides an article on the issues of money and banking in the U.S. and another academic provides a comment on said article. The table of contents is as fol …

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Gold Wars

– July 14, 2010

“This book is much more than a chronicle of gold wars. It is also an account of the historical failure of ‘Esperanto money.’ Over a hundred years ago, a Polish physician by the name of Ludovik Lazarus Zamenhof (1859-1917) created a synthetic language i …

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Getting Off Track

– July 14, 2010

“Throughout history, financial crises have always been caused by excesses—frequently monetary excesses—which lead to a boom and an inevitable bust. In our current crisis it was a housing boom and bust that in turn led to financial turmoil in the United …

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“A Free-Market Monetary System”

– July 14, 2010

“When a little over two years ago, at the second Lausanne Conference of this group, I threw out, almost as a sort of bitter joke, that there was no hope of ever again having decent money, unless we took from government the monopoly of issuing money and …

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“Pound Rises After Data Show Higher-Than-Expected Inflation”

– July 13, 2010

“The pound rose against the dollar, snapping a three-day drop, as reports showed inflation above economists’ forecasts and higher retail sales, stoking speculation that the Bank of England may raise interest rates. “Although inflation is supposed to be …

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