CHAPTER 6

Critiques of Monetary Policy

Critiques of Monetary Policy

Fiat money is a relatively new phenomenon. It has been in use slightly more than three-quarters of one century. Thus, how historians will eventually evaluate this experiment with fiat money is yet to be determined. It is probably an understatement to suggest that the U.S. experience with this type of money, to this point, has not been an unmitigated success. Because fiat monies are controlled by governments, what historians must eventually assess is how governments have performed.

Monetary policy is reasonably transparent and the performance of governments as custodians of fiat money has not gone unnoticed. The critiques discussed in the next sections are not concerned with situations ...

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