The purpose of this article is to delineate the legitimate functions of government in a free society. This exercise differs from determining the “optimal” size of government, which economists have estimated at 15 to 30 percent of gross domestic product. James Madison, the chief architect of...

In 2001, the U.S. gross public debt was about $6 trillion; a decade later it was $14 trillion; by the end of 2012 it exceeded $16 trillion. A large part of that increase was absorbed by foreign holders, especially central banks in China and Japan. With the U.S. government gross debt ratio now in...

Monetarism is often misunderstood, overlooked, forgotten, or even derided. Yet its basic logic, resting on the quantity theory of money, is evident and remains important in a world of pure fiat monies. Most major central banks have abandoned monetary targeting in favor of setting interest rates...

China has made much progress since it first opened to the outside world in 1978 under the guidance of paramount leader Deng Xiaoping. The devastation caused by Mao Zedong during the Great Leap Forward (1958–60), the Great Famine (1959–61), and the Cultural Revolution (1966–76) led Deng to...

The Case for a Targeted Criticism of the Welfare State; Welfare: Savings Not Taxation; Liquidity Risk After the Crisis; Reorganization of Failing Financial Firms: A Capital Structure Solution; Monetary Policy in an Uncertain World: The Case for Rules; Reforming the Rules that Govern the Fed;...

Lessons from the crisis -- Rethinking central banking / Gerald P. O'Driscoll Jr -- Sorting out monetary and fiscal policies / Mickey D. Levy -- Learning the right lessons from the financial crisis / Kevin Dowd and Martin Hutchinson -- The new monetary framework / Jerry L. Jordan -- Liquidity...