Currency competition and free banking might increase the efficiency of the financial system, and bring some small triangle welfare gains. But the key question is whether their adoption would improve macroeconomic performance. Even though Salin argues (p. 281) that ‘the best system is that which produces the least inflation', fluctuations in output are also expensive. Hayek states that the adoption of his proposal would end recessions. There is absolutely no reason to believe that. Nineteenth century history is evidence that free banking and currency issue, in the wrong legal and regulatory framework, can produce rather than reduce instability. The proponents of free banking and currency issue in this volume do not go much beyond a general belief in competition in justifying their views; they have certainly not explored the necessary legal and regulatory environment in any detail.
Stanley FischerRelated topics
adoption banking believe best beyond century currency end free general history increase inflation instability key least might necessary nineteenth output produce question reason small triangle wrong hayek statesRelated quotes
How great hath been the number of those who have falsely laid claim to a cause within Islám, and ye followed in their footsteps without having witnessed a single proof. What evidence can ye then produce in the presence of your Lord, if ye do but meditate a while?
Take ye good heed in your night lest ye be a cause of sadness to any soul, whether ye be able to discover proofs in him or not, that haply on the Day of Resurrection ye may not grieve Him within Whose grasp lieth every proof. And when ye do not discern God's testimony in a person, he will verily fail in manifesting the power of Truth; and God is sufficient to deal with him. Indeed on no account should ye sadden any person; surely God will put him to the proof and bring him to account. It behooveth you to cling to the testimony of your own Faith and to observe the ordinances laid down in the Bayán.
Báb
Rawls resorted to Hegel in his internal reflections on a constitutional state. On the plane of inter-state relations, Kant remained his philosopher of reference, as the theorist of conditions for a perpetual peace. So too for Habermas. But since Kant failed to envisage the necessary legal framework for a cosmopolitan order, as it started to take shape through the permanent institutions of the United Nations, Habermas, when he came to review the progress made since 1945, also looked towards the philosopher of objective idealism. Measured against the sombre background of the disasters of the first half of the twentieth century, he decided, ‘the World Spirit, as Hegel would have put it, has lurched forward'. As we have seen, Bobbio was responsible for the most pointed appeal to Hegel of all. In one sense, he was more entitled to do so.
Perry Anderson
As a graduate student at Yale, I studied the whole of Christian theology but focused my attention on the Darwinian controversies. I wanted to get to the root of the conflict between Darwinian evolution and Christian doctrine. In the course of my research I learned (to my surprise) that biblical chronology played almost no role in the 19th- century controversies, since most theologians had already accepted geological evidence for the age of the earth and re-interpreted the days in Genesis as long periods of time. Instead, the central issue was design. God created the cosmos with a plan in mind. This affirmation is among the most basic in all of Christianity (and other theistic religions as well, including Unificationism). And that plan included human beings as the final outcome of the creative process: we are created in the image of God.
Jonathan Wells
The eighteenth century called upon man to free himself of all the historical bonds in the state and in religion, in morals and in economics. Man's nature, originally good and common to all, should develop unhampered. In addition to more liberty, the nineteenth century demanded the functional specialization of man and his work; this specialization makes one individual incomparable to another, and each of them indispensable to the highest possible extent. However, this specialization makes each man the more directly dependent upon the supplementary activities of all others. Nietzsche sees the full development of the individual conditioned by the most ruthless struggle of individuals; socialism believes in the suppression of all competition for the same reason. Be that as it may, in all these positions the same basic motive is at work: the person resists to being leveled down and worn out by a social technological mechanism.
Georg Simmel
"Psychiatry" and "psychiatrist" are easily redefined to mean "an anti-social enemy of the people". This takes the kill crazy psychiatrist off the preferred list of professions ... The redefinition of words is done by associating different emotions and symbols with the word than were intended... Scientologists are redefining "doctor", "Psychiatry" and "psychology" to mean "undesirable antisocial elements"... The way to redefine a word is to get the new definition repeated as often as possible. Thus it is necessary to redefine medicine, psychiatry and psychology downward and define Dianetics and Scientology upwards. This, so far as words are concerned, is the public opinion battle for belief in your definitions, and not those of the opposition. A consistent, repeated effort is the key to any success with this technique of propaganda.
L. Ron Hubbard
