A Libertarian Money

Abstract

After VERY briefly reviewing the last 350 years of money and central bank monetary policy, the author reviews whether recently developed and developing cryptocurrencies provide more stable money. The answer is no. The author proposes that central banks adopt currency board rules that eliminate monetary policy in place of a market determined money supply. Moreover, he proposes that such currencies’ value be anchored to the market value of a small basket of globally traded commodities. By adopting the IMF’s SDR as the currency anchor and replacing SDR allocations with issuing them under currency board rules and eventually replacing the SDR valuation basket of currencies with the above-mentioned commodity basket, the SDR is likely to replace the dollar or any other currency for international payments and reserves.