Hayek on Milton Friedman and Monetary Policy

I thought Milton was in favor of competing currencies.. Was he not?

@dt3891 that’s interesting.

@captcool420 true, however if that currency should ever become compromised it would be better to have an alternative ( a legal alternative of course ) as opposed to a monopoly which is what you get with the dollar and the ever approaching collapse that comes with it.

@ninjashade411 I find free banking very interesting. I think at the least there ought to be a hard currency backed by a commodity that responsible savers can divert their money into to avoid the whims of an inflationary fiat.

@zentonil oh cool thanks! ill definitely look that up :) so i guess u agree on competing currencies then.

@ninjashade411 Check out the history of Canadian banking! Our major banking houses such as RBC and TD had competing currencies before central banking took over.

So going back to 8 chickens for 3 apples…that’s the first thing that comes up to mind for competing currencies. Guess ill need clarification lol.

Hayek would likely love the concept of Bit Coin

While I can’t say I agree with Hayek on a good number of issues, I’ve always enjoyed reading him.

@shaqdaddy11 He said Spartaaaaaaaaaaaaaaaa

…Speaking of Leatherman [previous comment], consider that Victorinox (sole supplier to the swiss army) previously dominated the market to the point that multi-tools were colloquially termed Swiss Army knives even when made by off-brand manufacturers. Enter Tim Leatherman and the game changed. That’s how money can work too.

@MrMustard12345 What you say points to the inherent complexity of a free market and hence the insanity of coercion-based regulatory policies.
By the way, did anyone elect Tim Leatherman, manufacturer of multi-tools? Or Sam Walton? or… the list is long.
No. These individuals built teams around themselves to offer consistent value to the aggregated needs or desires of mind-boggling numbers of people. Currencies can work exactly like this.

@tifforo1 Maybe they let on this appearance but i do not know of any of them that would phrase it in such absolute terms. They seem to fully grasp the psychological influences, business influences that can actually inflate the monetary perception. Personally, i wouldn’t mind the deflation as it just means economic soberization, but some people would be hurt by it and governments do not much care for that .

@Malthus0 Yea it makes sense theoretically. I don’t think there is much of an argument against that.

@captcool420 That is what would happen most likely. However the point of competition is not necessarily having loads of competitors a la the perfect competition model. As Hayek points out competition is a discovery procedure & we don’t know the optimum No. of competitors before the fact. As long as there are no barriers to entry the dominant firm will be constrained by real & even only potential competitors & be replaced if they take their eye of the ball. Someone will always fill their shoes.

I like the idea of competing currencies theoretically, but in practice it seems like people would eventually settle on one strong currency for the sake of convenience.

I like how he does his napolean pose at the end.

If there is anything in the field of public policy and economics more riveting than an argument between intellectuals in the Libertarian field would someone please inform me?

My Keynes Hayek: The Clash That Defined Modern Economics is published in October by W.W.Norton. See website: sites.google.com/site/wapshott­keyneshayek/

Nicholas Wapshott

One thing that bothers me is that a fair number of monetarists and especially Austrians speak as though expansion of the money supply is the sole determinant of price inflation. There is also this idea among some Austrians that expanding the money supply is always bad, even though not expanding it would lead to deflation if output increases.

This is the first Youtube video about economics I have seen that actually has a majority of intelligent comments in it. Maybe it’s because it doesn’t have the psychotic rivalry between libertarians and those on the economic left but rather highlights differences among libertarian economists.

How would having competing “monies” within a single country like the United States work without the “monies” having intrinsic value? If the competing “monies” had intrinsic value, would they differ from regular goods? That would seem to be a more sophisticated-but still inefficient-form of bartering. Also, what happens when one firm effectively “wins” and becomes the preferred distributor? That would amount to the initial issue but with the added problem that the issuer(s) is unelected…

Competing currencies rock!!

Hayek is teh sex.

@spamdude1 Atleast that is what I took out of it. I have a double major in Econ and Finance and took Monetary policy so I hope that helped :)