Why Devalue?
By John D. Mueller
Posted: Tuesday, June 29, 1993
Almost all industrial countries today are suffering from permanent unemployment, and most are suffering from currency instability. The two problems are related: an expansive economic policy which leads to a currency crisis is usually intended to reduce unemployment. This report considers how both problems might be solved at the same time -- and more specifically, the circumstances in which currency devaluation will be necessary, useful or ineffective.   [Read More]

The Curse of Being a Reserve Currency
By John D. Mueller, Lewis E. Lehrman
Posted: Monday, January 4, 1993
The European monetary system is breaking down for the same reason the gold-exchange standard in 1931 and the Bretton Woods system in 1971 collapsed: the use of domestic currencies as international reserves.  To describe the problem simply:  For other countries to increase their foreign exchange reserves, the reserve currency country must purchase more wealth abroad than it sells--i.e., run a balance-of-payments deficit.  This demand for wealth without a matching supply causes inflation of either goods or securities prices--usually both in succession.  [Read More]

The World's Real Money Supply
By John D. Mueller
Posted: Tuesday, March 5, 1991
Government reports of dropping GNP confirm what most forecasters a year ago said wouldn't happen: a mild recession.  Ignoring the dollar's role as the world's chief official "reserve currency" leads to systematic errors, both in forecasting the economy and in setting economic policy.  [Read More]

A Subsidy for Motherhood: Why I Now Support Social Security
By John D. Mueller
Posted: Thursday, October 15, 1987
Like many other American institutions, Social Security has had its critics on both the Right and the Left.  Both sides have called for the elimination of the program for differing reasons.  Yet, Social Security remains popular with the American public.  How is it that a program that is so criticized by both sides of the political spectrum can remain popular with the public?  Policy-makers may believe that they have better access to and understanding of information pertaining to Social Security than does the public.  The public, on the other hand, may feel that the policy-makers are out of touch with societal values that they hold.  This article explains how the Social Security system, as it exists, allows families to provide for themselves without forcing both parents into the workplace full-time in order to support the family.  Social Security and its "family wage" allow the family to provide for themselves, without nationalizing items such as medical care, housing, and child care.  Instead, what is nationalized are the functions of the nuclear family.  [Read More]

The Reserve-Currency Curse
By John D. Mueller
Posted: Thursday, September 4, 1986
Since 1971 the world has suffered two great inflations and three recessions. Will the world ever settle down to sustained noninflationary growth? Unfortunately, no--not unless a basic flaw in the world monetary system is corrected.  [Read More]