The Super-Alertness of Central Banks
Review of Austrian Economics, Forthcoming
27 Pages Posted: 15 Feb 2019
Date Written: January 21, 2019
This paper applies Kirzner’s theory of entrepreneurial alertness to central banking. As opposed to entrepreneurs operating within the market, central banks can operate outside the market by defining its structure and regulations. We label as “super-alertness” the particular type of Kirznerian alertness that central banks are required to have to successfully achieve stable monetary equilibrium.
Keywords: Free Banking, Central Banking, Alertness, Super-Alertness, Monetary Equilibrium
JEL Classification: B53, D80, E50
Suggested Citation: Suggested Citation