Money and the rule of law generality and predictability in monetary institutions Peter J. Boettke, George Mason University, Virginia, Alexander William Salter, Texas Tech University, Daniel J. Smith, Middle Tennessee State University

Format:

Book

Author/Creator:

Boettke, Peter J., author.

Salter, Alexander William, author.

Smith, Daniel J., 1984- author.

Language:

English

Subjects (All):

Monetary policy.

Banks and banking, Central.

Banks of issue.

Physical Description:

1 online resource

Place of Publication:

Cambridge, United Kingdom New York, NY Cambridge University Press 2021

Summary:

"The reigning paradigm in monetary theory and policy has settled on 'constrained discretion' as the preferred central bank operating framework. This supposedly combines the best features of rules and discretion in central banking. But this romantic view is wrong. Constrained discretion is just discretion. No matter how smart or well-intentioned, discretionary central banking is plagued with information and incentive problems. These problems make it systematically unlikely that central bankers can deliver macroeconomic stability. Furthermore, discretionary central banking implicitly violates many of the jurisprudential norms of liberal democracy. Especially since the 2007-8 financial crisis, discretionary central banking has demonstrated it is difficult to reconcile with self-governance. We develop several novel arguments for why rules are preferable to discretion in monetary policy. Drawing on a wide body of scholarship, and especially the work of Nobel laureates Buchanan, Friedman, and Hayek, we show why discretionary central banking fails. We need rules, not discretion."-- Provided by publisher

Contents:

Knowledge problems with discretionary monetary policy

Incentive prolems with discretionary central banking

When firefighters are arsonists

On the shoulders of giants : monetary policy insights of the classically liberal nobel laureates

Money and the rule of law

Conclusion : money and liberalism in the 21st century

Notes:

Includes bibliographical references and index

Description based on print version record and CIP data provided by publisher; resource not viewed

Other Format:

Print version Boettke, Peter J.. Money and the rule of law

ISBN:

9781108806787

1108806783

OCLC:

1202730217

Access Restriction:

Restricted for use by site license