Friday, January 14, 2011

On Monetary Morality

According to Prof Paul Krugman (2011):
If you’re the kind of person who views being taxed to pay for social insurance programs as tyranny, you’re also going to be the kind of person who sees the printing of fiat money by a government-sponsored central bank as confiscation. You may try to produce evidence about the terrible things that happen under fiat currencies; you may insist that hyperinflation is just around the corner; but ultimately the facts don’t matter, it’s the immorality of activist monetary policy that you hate.
Prof Krugman has previously used the term "paleomonetarism" to describe this phenomenon. I would suggest that "monetary imperiousness" may be useful as well (or how about "monetary impericism")...

Source: Krugman, P (2011, January 14), Monetary Morality, NY Times.

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