Can the 'invisible hand' handle money? George Selgin challenges the view that government regulation creates monetary order and stability, and instead shows it to be the main source of monetary crisis. The volume is divided into three sections: * Part I refutes conventional wisdom holding that any monetary system lacking government regulation is 'inherently unstable', and looks at the workings of market forces in an otherwise unregulated banking system. * Part II draws on both theory and historical experience to show how various kinds of government interference undermine the inherent efficiency, safety, and stability of a free monetary system. * Part III completes the argument by addressing the popular misconception that a monetary system is unsound unless it delivers a stable output price-level.
Author(s): George Selgin
Edition: 1
Year: 1996
Language: English
Pages: 300
Book Cover......Page 1
Title......Page 4
Contents......Page 5
List of illustrations......Page 10
Acknowledgements......Page 11
INTRODUCTION......Page 12
HOW WOULD THE INVISIBLE HAND HANDLE MONEY? (with Lawrence H.White)......Page 26
THE EVOLUTION OF A FREE BANKING SYSTEM (with Lawrence H.White)......Page 68
THE RATIONALIZATION OF CENTRAL BANKS......Page 88
THE STABILITY AND EFFICIENCY OF MONEY SUPPLY UNDER FREE BANKING......Page 108
COMMERCIAL BANKS AS PURE INTERMEDIARIES Between ~old~ and ~new~ views......Page 130
FREE BANKING AND MONETARY CONTROL......Page 140
MONETARY EQUILIBRIUM AND THE PRODUCTIVITY NORM OF PRICE-LEVEL POLICY......Page 153
THE ~PRODUCTIVITY NORM~ VERSUS ZERO INFLATION IN THE HISTORY OF ECONOMIC THOUGHT......Page 174
ARE BANKING CRISES FREE-MARKET PHENOMENA?......Page 204
LEGAL RESTRICTIONS, FINANCIAL WEAKENING, AND THE LENDER OF LAST RESORT......Page 218
IN DEFENSE OF BANK SUSPENSION......Page 247
BANK-LENDING ~MANIAS~ IN THEORY AND HISTORY......Page 267
Index......Page 289
