A Laissez-Faire Approach to Monetary Stability

Abstract

THIS PAPER DEVELOPS some diverse hints for a new monetary offered separately by Fischer Black, Eugene Fama, and Robert E. Hall. (For reasons that will become evident, though, we should perhaps say payments system instead of monetary system.) None of the economists mentioned has actually proposed the particular set forth here nor examined all its properties, and we call it the BFH system not to implicate them but only to give credit for some component ideas and to have a convenient label.l Regardless of who if anyone may actually advocate the system, contemplating it is instructive. It illuminates, by contrast, some characteristics of our existing and recent systems.