February 25, 2015

Russ Roberts Interviews Lawrence H. White about 'Renewing the Search for a Monetary Constitution'

Lawrence H. White

Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics

Russell Roberts

Affiliated Senior Scholar

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In a live version of his EconTalk podcast, Russ Roberts interviewed Lawrence H. White about Renewing the Search for a Monetary Constitution — a new Cato book White has coedited with Victor J. Vanberg and Ekkehard Köhler.

Despite their substantial independence and discretionary powers, central banks have generally failed to achieve their goals of maintaining either low and stable inflation or tolerably low unemployment. Many blame monetary discretion for this failure, noting that such discretion tempts central bankers to engage in monetary “fine tuning” that ends up fueling booms and busts, leaving declared objectives to fall by the wayside. Should monetary authorities be reined in by a constitution? If so, how might this be done successfully? The essays in Renewing the Search for a Monetary Constitution, by Lawrence White and others, address these and other crucial questions.