A limited constitutional government calls for a rules-based, freemarket monetary system, not the topsy-turvy fiat dollar that now exists under central banking. This issue of the Cato Journal examines the case for alternatives to central banking and the reforms needed to move toward free-market money.
Americans are finally enjoying an improving economy after years of recession and slow growth. The unemployment rate is dropping, the economy is expanding, and public confidence is rising. Surely our economic crisis is behind us. Or is it? In Going for Broke: Deficits, Debt, and the Entitlement Crisis, Cato scholar Michael D. Tanner examines the growing national debt and its dire implications for our future and explains why a looming financial meltdown may be far worse than anyone expects.
The Cato Institute has released its 2014 Annual Report, which documents a dynamic year of growth and productivity. “Libertarianism is the philosophy of freedom,” Cato’s David Boaz writes in his book, The Libertarian Mind. “It is the indispensable framework for the future.” And as the new report demonstrates, the Cato Institute, thanks largely to the generosity of our Sponsors, is leading the charge to apply this framework across the policy spectrum.
Playing Monopoly with the Devil: Dollarization and Domestic Currencies in Developing Countries
Featuring the author, Manuel Hinds, former minister of finance of El Salvador; with comments by Steve Hanke, Professor of applied economics at Johns Hopkins University, and Senior Fellow, Cato Institute.
Poor countries should not forgo the benefits of dollarizing their economies in the name of having a currency they can call their own. Manuel Hinds, an architect of El Salvador’s dollarization, will challenge conventional thinking about monetary sovereignty and optimal currency areas. The sorry record of central banks in developing countries is not the only reason to favor the use of a hard currency. Without an internationally tradable currency, developing countries are walled off from the globalized financial system, thus raising the cost of business and increasing risk and uncertainty in the economy. Steve Hanke will discuss how the book’s insights relate to currency experiences in countries as diverse as Ecuador and Montenegro.