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A Pre-history of the Federal Reserve

  • David Howden
Chapter

Abstract

While economists have generally quite favorable views of market-oriented solutions to the provisions of goods and services, there is one common exception: money (Rothbard 1991: 2; Huerta de Soto 2012: xxx). This seeming paradox brings with it three unfortunate results. First, since the supply of money is assumed to be produced optimally by a central bank, monetary economics commonly treats it as an exogenous variable. Second, and as a consequence of this point, is that any change to central bank controlled monetary policy is seen as a panacea for economic disequilibria. Finally, since the central bank is in control of the panacea it is raised to the lofty position of “doctor” of the economy, a highly respected and necessary role to correct for imbalances caused by entrepreneurs and investors.

Keywords

Central Bank Federal Reserve Money Supply Banking Sector European Central Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.St. Louis UniversityMadridSpain

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