Irresponsible monetary policy can undermine prosperity by promoting business cycles and otherwise preventing the price system from reflecting the true scarcity of various goods and services. Sound monetary policy limits such damaging distortions. In a fiat monetary system, it does so by assigning a central bank the overarching objective of maintaining a stable and predictable overall level of spending on goods and services, while insulating it from political pressure to pursue other, conflicting ends. But in a free society that attaches a high value to competition, consumer choice, and innovation, monetary authorities should also allow people the freedom to employ unofficial substitutes for official fiat currency: if the official monetary standard is to prevail, it should do so because it is well-managed and not because alternatives have been suppressed.
Monetary Policy
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Financial Market Reform
Washington’s Plans May Result in Even Higher Executive Pay
Hu versus Sarkozy
Regulatory Cat and Mouse
Bailouts, Debt Magnify Risk of Future Economic Troubles
Did Bernanke Save Us from Another Great Depression?
Betting Against the Fed
Big Government, Big Recession
A New International Monetary System
End the Fed? A Not-So-Crazy Idea
Socialist-Market Virus Threatens US and China
Is a New Bubble Being Formed?
The Bernanke Question
Bernanke Must Go