Hayek on the euro

Tru dat

I’ve just finished a book titled Hayek, Currency Competition and European Monetary Union, the text of the 1999 Hayek Memorial Lecture given at the Institute of Economic Affairs by European Central Bank bod Otmar Issing.

Issing quotes Hayek’s Denationalisation of Money from 1978 saying

“though I strongly sympathise with the desire to complete the economic unification of Western Europe by completely freeing the flow of money between them, I have grave doubts about doing so by creating a new European currency managed by any sort of supranational authority. Quite apart from the extreme unlikelihood that the member countries would agree on the policy to be pursued in practice by a common monetary authority (and the practical inevitability of some countries getting a worse currency than they have now), it seems highly unlikely that it would be better administered than the present national currencies.”

Issing spends his lecture arguing that Hayek was wrong.

Otmar 0 – 1 Hayek

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