by Alex Salter, Mises:
What role should the public sector play in an economy’s monetary framework? In other words, should money be provided by the market or by the government? Economists have been wrestling with such questions for centuries, but since the financial crisis and the ensuing recession, the question has become increasingly important. We are at a crossroads.
Despite the general market orientation of developed countries across the globe, all have rejected a laissez-faire approach to money. And all assign to public agencies, most notably central banks, the provision and oversight of money. The various rationales for doing so rest on a number of unsound premises and questionable reasoning, which I’d like to cover briefly.
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