ISSN 1801-0938 New Perspectives on Political Economy Volume 5, Number 2, 2009, pp. 111 – 128 Monetary Reform – The Case for Button-Pushing Philipp Bagus JEL Classification: E50, P11, P21, P31 Abstract: In this paper I present a monetary reform plan that seeks to achieve a sound monetary system. I suggest the following three criteria of a good reform: it must be ethical, it must be based on sound economic theory and it must leave room for evolutionary processes. Based on these criteria and applying them to the monetary system, I argue for an immediate cancellation of all government intervention into the monetary realm. Assistant professor at Universidad Rey Juan Carlos, Madrid,
[email protected]. I would like to thank William Barnett II, Walter Block, Barbara Hinze, Guido Hülsmann and Mark Thornton for helpful comments and the Ludwig von Mises Institute for financial help. 112 New Perspectives on Political Economy 1 Introduction In a previous paper (Bagus, 2008), I presented the proposals for monetary reform of- fered by the Austrian economists Ludwig Mises, Murray N. Rothbard, Jesús Huerta de Soto and Hans Sennholz. Their aim is a more stable monetary system that permits monetary freedom. Without questioning the aim, I set out to criticize the way that those outstanding economists proposed to get to their aim. In fact, Mises, Rothbard, Huerta de Soto and Sennholz offer plans of monetary reform that entail numerous state interventions into the economy, inconsistencies, arbitrariness, and tactical am- biguities. Their proposals contradict their own ethical and political principles, only partially resulting in monetary reform.