Money as Meta-Rule: Buchanan's Constitutional Economics as a Foundation for Monetary Stability

46 Pages Posted: 8 Nov 2016 Last revised: 28 Sep 2018

See all articles by Peter J. Boettke

Peter J. Boettke

George Mason University - Department of Economics

Alexander William Salter

Texas Tech University - Rawls College of Business; American Institute for Economic Research

Daniel J. Smith

Middle Tennessee State University - Department of Economics and Finance

Date Written: Septeber 27, 2018

Abstract

This paper explores James Buchanan’s contributions to monetary economics and argues these contributions form the foundation of a robust monetary economics paradigm. While often not recognized for his contributions to monetary economics, Buchanan’s scholarship offers important insights for current debates. We argue that the post-2007 crisis milieu creates a unique opportunity to recognize, as Buchanan did, the vital role that money plays in the market as the ‘grammar of commerce.’ That recognition makes the need for more fundamental reform of our monetary regimes at the constitutional level more apparent, making Buchanan’s work on monetary constitutions more relevant than ever before. We then discuss how adopting Buchanan’s monetary framework can improve both monetary scholarship and institutions.

Keywords: Central Banking; James M. Buchanan; Monetary Constitution; Monetary Stability; Federal Reserve; Rule

JEL Classification: B2; B31; E5

Suggested Citation

Boettke, Peter J. and Salter, Alexander William and Smith, Daniel J., Money as Meta-Rule: Buchanan's Constitutional Economics as a Foundation for Monetary Stability (Septeber 27, 2018). GMU Working Paper in Economics No. 16-49; Public Choice 176(3) 2018: 529-555; AIER Sound Money Project Working Paper No. 2018-12. Available at SSRN: https://ssrn.com/abstract=2866036 or http://dx.doi.org/10.2139/ssrn.2866036

Peter J. Boettke

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)

Alexander William Salter

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

HOME PAGE: http://awsalter.com

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

Daniel J. Smith (Contact Author)

Middle Tennessee State University - Department of Economics and Finance ( email )

MTSU Box 27
1301 E. Main St.
Murfreesboro, TN 37132-0001
United States

HOME PAGE: http://www.danieljosephsmith.com/

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