I’m fascinated about writing a critique of libertarian financial concepts. (I have already got one criticizing MMT.) However first I’d wish to have a greater sense of what these concepts really are. Thus I’d respect any feedback that you just may need on the most effective locations to discover a abstract of those concepts.
Let’s begin with “abolish the Fed”, an concept I see talked about in varied settings. In some instances, it’s not laborious to think about what folks imply by the time period “abolish”. Thus if folks had been to say abolish FDIC, I imagine that I’d know precisely what they imply. However abolish the Fed? That would imply one in every of many various issues. The satan is within the particulars, particularly the transition from right here to there.
A lot of the uncertainty pertains to the standing of base cash (particularly forex), in addition to debt devices that promise to pay $X {dollars} of base cash at a specified future time period. Does abolish the Fed imply abolish the US greenback? That appears unlikely; how would all of our greenback denominated debt be repaid?
Maybe the proposal is to peg the US greenback to a set price of gold, after which permit personal entities to problem banknotes. To me, that appears essentially the most possible method of abolishing the Fed. In that case, it will make extra sense to explain the proposal in a optimistic sense—say outline the greenback as X grains of gold—slightly than within the damaging method (abolish the Fed.)
A libertarian may say they aren’t wedded to the gold commonplace, and that the market ought to determine what system works greatest. OK, however then within the meantime what will we do with the entire US forex and greenback denominated debt? Am I lacking one thing?
What are another libertarian financial concepts? I’ve seen the next concepts kicked round in varied locations:
1. Inflation focusing on is a foul concept, as a result of it’s a type of value management.
2. NGDP focusing on is a foul concept, because it’s a type of central planning.
3. The consequences of financial coverage rely very a lot on who will get the cash first.
4. The Fed has been artificially controlling rates of interest in latest a long time, often holding them under equilibrium.
5. Fed coverage artificially raises asset costs, typically creating asset value bubbles.
6. In a free market, personal currencies would displace the US greenback.
I’m in a slightly odd place. I view these concepts as being principally or completely flawed. And but I view myself as a libertarian and examine my very own strategy to financial coverage as being comparatively libertarian.
So please assist me. What libertarian concepts am I overlooking? Which of them did I get flawed? And precisely how is the abolition of the Fed to be carried out?