Panama Has No Central Bank

For a real-world example of how a system of market-chosen monetary policy would work in the absence of a central bank, one need not look to the past, writes David Saied. An example exists in present-day Central America, in the Republic of Panama, a country that has lived without a central bank since its independence, with a very successful and stable macroeconomic environment. There is no deposit insurance and no lender of last resort, so banks have to act in a responsible manner. Any bad loans will be paid by the stockholders; no one will bail these banks out if they get into trouble.

Zimbabwe: Best Performing Stock Market in 2007?

The Zimbabwe Stock Exchange (the ZSE) is the best performing stock exchange in the world, the key Zimbabwe Industrials Index up some 595% since the beginning of the year and 12,000% over twelve months. And yet, the country is crumbling, writes John Paul Koning. Zimbabwe is in the middle of an economic disintegration, with GDP declining for the seventh consecutive year, half what it was in 2000. Ever since President Mugabe’s disastrous land-reform campaign (an entire article in itself), the country’s farming, tourism, and gold sectors have collapsed. Unemployment is said to be near 80%. What gives?

Smashing the State: Statists Have Volume But Lack Spine

The establishment mouthpiece The Politico, published by Robert Allbritton (media “maven,” royalist, and of scandalous Riggs Bank infamy*), has just released a disingenuous review of Brian Doherty’s Radicals for Capitalism that exhibits a strong scent of desperation. The reviewer seems to get a few things right, but seems to have misunderstood the entire purpose of the book.

Ok, fine, so what is to be done, huh Nation?

The Nation has posted an interesting article on how corporate conglomerates are ganging up on on Google to use government to give the innovative company the what for. So I read this because I was curious: what is the leftist answer here? Favor the corporate conglomerate or the corporate conglomerates that are attacking the corporate conglomerate? Just put government in charge, or the people via the marketplace?

But you can read too: there is no answer.

Here is their conclusion:

Trade Deficits and Collectivism

Lately I’ve written several articles (1, 2, and 3) warning Austro-libertarians of a dangerous trend. I am concerned that many bona fide Rothbardians are so disgusted with fiat money and fractional reserve banking systems that they endorse criticisms of these institutions even when they are based on faulty economics. In particular, much of the handwringing over the large current account deficits in recent years would, if valid, be just as applicable to deficits arising in a purely free market.

The Tepid Movement Before Mises

What counted as radical market liberalism in the days before the Misesian revolution? B.K. Marcus considers a famous pamphlet by Milton Friedman and George Stigler. It was an attack on price controls called “Roofs or Ceilings.” It was fine as far as it went. But it also makes this claim: “Heavy taxation, governmental economies, and control of the stock of money are the fundamental weapons to fight inflation.” “Roofs or Ceilings” was a pale shadow of classical liberalism and a less than prestigious foreshadowing of the libertarian movement to come.
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