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.
Spending Cuts or Devaluation? Resolving the Financial Crisis in the Baltic Countries
Featuring Anders Aslund, Senior Fellow, Peterson Institute for International Economics; and Desmond Lachman, Resident Fellow, American Enterprise Institute; moderated by Marian L. Tupy, Policy Analyst, Center for Global Liberty and Prosperity.
In his new book, The Last Shall Be the First, Anders Aslund argues that the governments of the Baltic countries were right to respond to the 2008 financial crisis by slashing spending, while maintaining a fully fixed exchange rate between their domestic currencies and the euro. According to Aslund, this “internal devaluation” allowed the Baltics to quickly return to growth. Desmond Lachman contends that the sharp decline in the GDP in the Baltics in 2009 would not have happened if, instead of austerity measures, the Baltic governments had abandoned fixed exchange rates in favor of currency devaluation. Which of these two approaches is correct — and does the solution of the crisis in the Baltic countries hold any lessons for the United States and the European Union? Please join us for a spirited discussion.