HAYEK’S “DENATIONALIZATION OF MONEY” - A REVIEW

• Published in: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Main Author: BOGDAN BĂDESCU
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2014-08-01
• Subjects: Hayek; the denationalization of money; competing currencies; the gold standard; the Austrian school
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2014-04/36_Badescu%20Bogdan.pdf

This article aims to be an overview of the model proposed by Hayek and to explore the possibility of its implementation as a reform of the current monetary system. Research has shown that the proposed system somewhat resembles today’s international monetary system, with various currencies and issuers. Therefore, it seems that the transition to such a system would likely start with the complete removal of controls on capital movements and exchange rates, paths on which steps have already been made. The analysis of the model revealed a number of issues yet to be clarified, which call into question its ability to have performance in practice. The biggest problem is that such a system did not exist before and therefore there is no empirical data available. However, this does not mean that it is impossible to implement, but casts doubt on the concepts on which it was built.