On Hayek's denationalization of money, free banking and inflation targeting
J. Stephen Ferris () and
The European Journal of the History of Economic Thought, 2006, vol. 13, issue 2, 213-231
Recent central bank experience with inflation targeting is used to restate Hayek's reform proposal as a performance contract. This requires banks to first state an explicit inflation target and then promise to perform a set of actions whenever an independent forecast departs from target. Making such actions explicit and observable makes the promise of price stability offered by competing banks operational and enforceable. Competition among banks then leads to convergence on current best practice in the short term and to faster performance evolution as the incentive to innovate induces improvements over the long term.
Keywords: Non-redeemable money; Hayek; free-banking; inflation targeting; performance contracting (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:eujhet:v:13:y:2006:i:2:p:213-231
Ordering information: This journal article can be ordered from
Access Statistics for this article
The European Journal of the History of Economic Thought is currently edited by José Luís Cardoso
More articles in The European Journal of the History of Economic Thought from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().