“Currency competition and free banking might increase the efficiency of the financial system, and bring some small triangle welfare gains. But the key question is whether their adoption would improve macroeconomic performance. Even though Salin argues (p. 281) that ‘the best system is that which produces the least inflation’, fluctuations in output are also expensive.
Hayek states that the adoption of his proposal would end recessions. There is absolutely no reason to believe that. Nineteenth century history is evidence that free banking and currency issue, in the wrong legal and regulatory framework, can produce rather than reduce instability. The proponents of free banking and currency issue in this volume do not go much beyond a general belief in competition in justifying their views; they have certainly not explored the necessary legal and regulatory environment in any detail.”

— Stanley Fischer

Stanley Fischer, "Friedman versus Hayek on Private Money: Review Essay" (1986)

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Stanley Fischer 2

American economist 1943

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“My own opinion—which I may as well indicate at the outset—is that pure Anarchism, though it should be the ultimate ideal, to which society should continually approximate, is for the present impossible, and would not survive more than a year or two at most if it were adopted. On the other hand, both Marxian Socialism and Syndicalism, in spite of many drawbacks, seem to me calculated to give rise to a happier and better world than that in which we live. I do not, however, regard either of them as the best practicable system. Marxian Socialism, I fear, would give far too much power to the State, while Syndicalism, which aims at abolishing the State, would, I believe, find itself forced to reconstruct a central authority in order to put an end to the rivalries of different groups of producers. The best practicable system, to my mind, is that of Guild Socialism, which concedes what is valid both in the claims of the State Socialists and in the Syndicalist fear of the State, by adopting a system of federalism among trades for reasons similar to those which are recommending federalism among nations.”

Bertrand Russell (1872–1970) logician, one of the first analytic philosophers and political activist

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1910s, Proposed Roads To Freedom (1918)

“If identical goods were being produced at widely differing efficiency in different parts of the United Kingdom or if the United Kingdom and Germany, or Japan, or the United States, were part of a single unit with a single currency, then of course the less efficient producers would be knocked out. That is why Germany is so keen for Britain to go into the European Monetary System, so that it can wipe out the British industries which it is in competition.”

Enoch Powell (1912–1998) British politician

Source: Speech in London (21 March 1980), quoted in Enoch Powell on 1992 (Anaya, 1989), p. 97

“We need a welfare state of some sort for efficiency reasons, and would continue to do so even if all distributional problems were solved.”

Nicholas Barr (1943) British economist

Source: Economics Of The Welfare State (Fourth Edition), Chapter 15, Conclusion, p. 354

“Low-end disruption occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance.”

Clayton M. Christensen (1952–2020) Mormon academic

Christensen cited in: Philip Kotler, John A. Caslione (2009) Chaotics: The Business of Managing and Marketing in the Age of Turbulence. p. 23
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“It has become increasingly evident, at least among those who aren't currency traders or true believers in the optimality of free markets, that it would be nice if this system could calm down a touch. One option is the Tobin tax, which would impose a tax of around 0.1 percent on currency trades, and act as a kind of damper on speculation.”

David Orrell (1962) Canadian mathematician

Source: The Other Side Of The Coin (2008), Chapter 6, At Rest Versus In Motion, p. 197

“It is therefore necessary to state what are the means which in our opinion lead to our desired ends, and which we propose to adopt.”

Errico Malatesta (1853–1932) Italian anarchist

An Anarchist Programme (1920)

“Mankind’s problems can no longer be solved by national governments. What is needed is a World Government. This can best be achieved by strengthening the United Nations system. In some cases, this would mean changing the role of UN agencies from advice-giving to implementation. But some of the most important new institutions would be financial—a World Treasury and a World Central Bank. Just as each nation has a system of income redistribution, so there should be a corresponding ‘World Financial Policy’ to be implemented by the World Bank and the World Central Bank. Some of these proposals are, no doubt, far-fetched and beyond the horizon of today’s political possibilities. But the idealist of today often turns out to be the realists of tomorrow.”

Jan Tinbergen (1903–1994) Dutch economist

Source: United Nations, Human Development Report 1994 http://books.google.com/books?id=pSa5Zrg5TnEC&pg=PA88, (1994), p. 88

“In rich economies, stability matters a lot; small further increases in allocative efficiency matter less. Thus, policy should be heavily focused on ensuring macroeconomic and financial stability and very wary of financial innovation if it carries with it any risk of increased instability.”

Adair Turner, Baron Turner of Ecchinswell (1955) British businessman

Source: Economics after the crisis : objectives and means (2012), Ch. 2 : Financial Markets: Efficiency, Stability, and Income Distribution

“I want to make sure you keep your eyes on the ball, that is, the two basic missions of a central bank. The first is maintaining macroeconomic stability: maintaining stable growth and keeping inflation low and stable. The principal policy tool for maintaining macroeconomic stability is monetary policy. In normal times, the Fed and other central banks use open market operations—purchases and sales of securities in markets—to move interest rates up or down, and in doing so try to create a more stable macroeconomic environment.
The second part of a central bank's mission is maintaining financial stability. Central banks are focused on trying to ensure that the financial system functions properly, and in particular, they want to prevent, if possible, and if not, to mitigate the effects of a financial crisis or a financial panic.”

Ben Bernanke (1953) American economist

Lecture 2: The Federal Reserve after World War II
The Federal Reserve and the Financial Crisis (2012)

“Mutual understanding would be immensely facilitated by the use of one universal tongue. But which shall it be, is the great question. At present it looks as if the English might be adopted as such, though it must be admitted that it is not the most suitable. Each language, of course, excels in some feature…. A practical answer to that momentous question must perforce be found in times to come, for it is manifest that by adopting one common language the onward march of man would be prodigiously quickened. I do not believe that an artificial concoction, like Volapuk, will ever find universal acceptance, however time-saving it might be. That would be contrary to human nature. Languages have grown into our hearts.”

Nikola Tesla (1856–1943) Serbian American inventor

A Means for Furthering Peace (1905)

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