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
509 results found
The Expanding Fed Role
The Volatile Dollar
Krugman’s Liquidity Claptrap
Socialism, US-Style
How Banks Slipped the Fed’s Noose
No Change for the Dollar
Fed Up
Behind The Scenes Of Imprudent Bank Loans
In Excess
Return of the Money Snatchers?
From Bubble to Depression?
Can IMF Currency Replace the Dollar?
The Dangers of a New Global Reserve Currency
Did the Fed Cause the Housing Bubble?