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Ideas for an Alternative Monetary Future

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Ideas for an Alternative Monetary Future

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moral hazard

Economic History, Free Banking, The Fed & Central Banks

Hayek on the Creation of Moral Hazard by Central Banks

Larry White/December 7, 2017June 19, 2022

Some years ago I published a paper on the banking theory and policy views of the important twentieth-century economist Friedrich A. Hayek, entitled “Why Didn't Hayek Favor Laissez Faire in Banking?”[1] Very recently, working on a new paper on Hayek’s changing views of the gold standard, I…

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bank runs, FDIC, Lehman Brothers, money market mutual funds, moral hazard
Financial Markets, Money & Politics

Can Money-Market Mutual Funds Reliably Avoid the Problem of Runs?

Larry White/February 3, 2016June 19, 2022

The majority of federally insured savings and loans failed in the 1980s, wiping out the Federal Savings and Loan Insurance Corporation in 1989.  The fiasco ultimately cost taxpayers around $150 billion to make savings depositors whole.  Two years later, the failures of hundreds of commercial banks put…

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courage to act, Bernanke, Federal Reserve, Fed, bailouts, moral hazard, TBTF, too big to fail
Money & Politics, News, The Fed & Central Banks

The Courage to Refuse

George Selgin/October 31, 2015June 19, 2022

[A well-known consequence of the Fed's rescue efforts consists of the "moral hazard" they pose–that is, their tendency to encourage extra risk-taking by persons who suppose that they, too, will be rescued  if their wagers don't pay. Yet one particularly dangerous sort of moral hazard  hasn't gotten…

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Welcome to Alt-M, a community devoted to exploring and promoting ideas for an alternative monetary future. Our goal is to reveal the shortcomings of today’s centralized, bureaucratic, and discretionary monetary arrangements, and to bring serious consideration of real alternatives to the center stage of current monetary and financial reform debates.

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