Quarterly Journal of Austrian Economics

Monetary Orders and Institutions: A Hayekian Perspective

The Quarterly Journal of Austrian Economics

Volume 15, No. 3 (Fall 2012)

An adaptive systems approach is used to compare a free banking system and a central banking regime with respect to their respective capacities to use and generate relevant knowledge. Monetary equilibrium, as a byproduct of a free banking system, has also been proposed as a norm for central bank policy. Differences in the way each system functions are found to cast doubt on that claim. The central problem identified is the difficulty of exporting results from one institutional setting (free banking)
to a qualitatively different one (central banking).


Butos, William N. “Monetary Orders and Institutions: A Hayekian Perspective.” The Quarterly Journal of Austrian Economics 15, No. 3 (Fall 2012): 259–276.

All Rights Reserved ©
What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. 

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member
Mises Institute