This paper explores key ideas in constitutional political economy by analyzing the writings of H.S.H. Prince Hans-Adam II of Liechtenstein. As a hereditary head of state, His Highness has significant political power. However, the constitution and political institutions of Liechtenstein give each...

Rafael Correa’s presidency in Ecuador (2007 – 2017) exemplifies left-leaning populist regimes in Latin America. However, there is a key difference: Ecuador is a dollarized economy. This removes the possibility of fiscal dominance over monetary policy as is common in populist regimes. This...

We use a model in which media of exchange are essential to examine the role of liquidity and monetary policy on production and investment decisions in which time is an important element. Specifically, we consider the effects of monetary policy on the length of production time and entry and exit...

Of the leading versions of lender of last resort policy, which is to be preferred in a world of realistic incentive and information imperfections? The three most prominent versions of lender of last resort policy are: the Classical system of central bank lending on good collateral at a penalty...

We develop a theory of self-enforcing monetary constitutions. A monetary constitution is the framework of rules within which money-providing and money-using agents interact. A self-enforcing monetary constitutions is upheld by the agents acting within the system; it thus does not require...

A growing body of research highlights the correlation between strong, centralized states and economic growth. Given the important role that national defense has played in the development of the state, it seems as though this would imply some relationship between military expenditures and...

Most liberal constitutional theorizing, as exemplified by Buchanan (1975) and Rawls (1971), Operates with a two-level scheme of analysis. The first level entails agreement on the rules through which a polity is constituted; the second level entails self-interested action inside that framework of...

Constitutional political economy mostly distinguishes between rules and actions, with rules selected prior to actions within those rules. While we accept the coherence of this distinction, we pursue it within an open rather than closed scheme of analysis. Doing this entails recognition that...

Contemporary monetary systems permit those in positions of authority to exercise discretionary power in the pursuit of monetary policy objectives. We argue there are strong prima facie reasons why this is normatively problematic. Engaging the literature on the rule of law, we argue that a...

While the primary causes of the 2007-8 financial crisis are disputed, many economists hold that the monetary policy missteps played a role in causing or prolonging the financial crisis. In light of the perceived failure of monetary orthodoxy, monetary models are being theoretically refined and...