Call Me Stormy

Finding righteous currents in turbulent times

Should We End the Fed?

Lawrence H. White, an economics professor at George Mason University in Fairfax, Virginia, calls for abolishing the Federal Reserve. That might sound like a heretical position, but White knows whereof he speaks, having an expertise in the history and theory of free banking. He cites several examples of countries that thrived without a central bank, among them, Hong Kong, Switzerland, Canada, Scotland and Sweden.

White favors getting rid of the Fed because he believes the reserve bank has overstepped its bounds by improperly tweaking monetary policy, greatly aggravating if not creating many of the speculative boom-and-bust cycles that have wreaked havoc with the American economy. In the absence of a central bank, he favors an aggregation of private banks, financial institutions and regional clearing houses assuming key essential tasks now performed by the Federal Reserve, including fund transfers between banks and issuance of currency. H/T

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