Free Banking

(Originally appeared on January 12, 2013.) An important post from Lars Christensen at The Market Monetarist this morning.  Lars argues that many folks have misunderstood the argument for monetary easing in order to target NGDP growth by framing it in terms of discretionary policy.  The market monetarists,…

The post Friday Flashback: Market Monetarism and the Monetary Constitution appeared first on Alt-M.

A well-known obstacle to the greater popularity of Bitcoin as a medium of payment is the high volatility of its exchange value. This volatility results from its built-in quantity commitment: because the number of Bitcoins in existence stays on a programmed path, variations in the real demand…

The post Dollar-Denominated Cryptocurrencies: Flops and Tethered Success appeared first on Alt-M.

The Cato Institute recently released Monetary Alternatives: Rethinking Government Fiat Money, a collection of essays 30 years in the making. As George Selgin explains in the foreword, The complacency wrought by the Great Moderation, not to mention the limited interest in fundamental monetary reform before then, resulted…

The post Looking for Alternatives to Government Fiat Money? appeared first on Alt-M.

(Editor’s note: This is the second installment of a three-part article.) Intervention or Private Initiative? As I argued in my previous post addressing Fung et al.’s article on Canada’s private banknote currency, the imperfections of that currency appear, on close inspection, far less substantial than Fung et…

The post Wrong Lessons from Canada’s Private Currency, Part 2 appeared first on Alt-M.

I’ve referred often in these pages to the virtues of Canada’s late-19th century currency system, with its heavy reliance upon circulating notes issued by several dozen commercial banks, most of which commanded extensive nationwide branch networks. I’ve also lamented the fact that so few monetary economists today, let…

The post Wrong Lessons from Canada’s Private Currency, Part 1 appeared first on Alt-M.