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In defense of fiduciary media—or, we arenot devo(lutionists), we are Misesians!

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Conclusion

Fiduciary media are not fiat money. A monetary system with a commodity standard, competitive banking, and the freedom to use fiduciary media among consenting transactors is consistent with justice, efficiency, and economic stability. It is preferable on these scores both to a system (like today's) where the law has forced money-users to give up gold and gold-redeemable fiduciary media in favor of fiat money, and to a system (like those proposed by 100-percent-reserve advocates) where the law restricts money-users from holding any or some types of fiduciary media.

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Authors and Affiliations

  1. the University of Georgia, USA

    George Selgin (associate professor of economics) & Lawrence H. White (associate professor of economics)

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  1. George Selgin
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With apologies to Devo, the '80s rock band who used the slogan “Are We Not Men? We Are Devo!”

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Selgin, G., White, L.H. In defense of fiduciary media—or, we arenot devo(lutionists), we are Misesians!. Rev Austrian Econ 9, 83–107 (1996). https://doi.org/10.1007/BF01103331

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