Central Banking: Legalized Monetary Piracy

In a free market for money, monetary policy would be unnecessary, with market forces governing the production and use of money. In the current monetary landscape, monetary policy constitutes a coercive, redistributive, and intentional force that benefits the political class at the expense of everyday consumers.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

In his 1982 article, “Monetary Policy: Theory and Practice,” Nobel laureate Milton Friedman—no friend of gold—said that,

If a domestic money consists of a commodity, a pure gold standard or cowrie bead standard, the principles of monetary policy are very simple. There aren’t any. The commodity money takes care of itself. (emphasis added)