The Denationalization of Money
Encyclopedia
The Denationalization of Money is a paper written by Friedrich Hayek
, and published in 1977, in which he advocated the establishment of a free market in money.
, that advocates a free market in money, and deregulation of banks and other financial institutions to allow them to print money in competition with each other. Hayek's effort was picked up by economists like George Selgin
, Richard Timberlake
, and Lawrence White.
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
, and published in 1977, in which he advocated the establishment of a free market in money.
Message
The premise is that a government monopoly can no more competently manage the supply and demand balance of money than it could do with shoes, automobiles, food, or health care. Instead of a national government issuing a specific currency, use of which is imposed on all members of its economy by force, private businesses should be allowed to issue their own forms of money, deciding how to do so on their own.Effects
This publication spawned an entire economic movement, free bankingFree banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
, that advocates a free market in money, and deregulation of banks and other financial institutions to allow them to print money in competition with each other. Hayek's effort was picked up by economists like George Selgin
George Selgin
George A. Selgin is a professor of economics in the Terry College of Business at the University of Georgia, a senior fellow at the Cato Institute in Washington DC, and an associate editor of Econ Journal Watch...
, Richard Timberlake
Richard Timberlake
Richard Timberlake, born 1922, is an economist who was Professor Emeritus of Economics at the University of Georgia for much of his career. He also has become a leading advocate of free banking, the belief that money should be issued by private companies, not by a government monopoly.-History:Born...
, and Lawrence White.