Ludwig von Mises said that there can never be too much of a good theory. Salerno proves it in this sweeping and nearly comprehensive book (672 pages, hardcover) on applied Austrian monetary theory. He uses the Mises/Rothbard theory of money to reinterpret historical episodes, reevaluate the history of thought, closely examine the Federal Reserve policy, seek out cause and effect in business cycles, provide a new understanding of war and social unrest, and clarify the relationship between the state and the central bank.
But it is not just about the past. He presents a great model for the future too with essays on how to tell real from fake gold standards, how to calculate the money supply and follow what the Fed is up to, and how to reform the international monetary system to keep money from the destructive hands of the state.
This book might be considered an intermediate text on the topic. If you have read Menger, Rothbard, Mises, or Hayek on the topic of money and you want to know what is next, this is your answer. Joseph Salerno is the master of the subject, and he demonstrates absolute virtuosity in these pages.
Salerno’s yardstick concerns the soundness of money. He is speaking of a subject too rarely raised: the quality of the money itself. Money originated as a commodity out of market exchange. The further the government and central bank drive money from its original soundness, toward a paper money and finally toward digits that government can manufacture out of nothing, the less sound the money becomes, and the more instability, inflation, false signalling, and economic chaos that results.
As he makes clear, money is either absolutely sound (meaning, part of the market order) or it is headed on that slide toward destruction. In the final commentary section, Salerno directly addresses modern monetary madness and speculates on the future.
The doyen of Austrian monetary economics, Prof. Joseph Salerno, has produced a great contribution to scholarship — one that merits careful study. Even though I don’t endorse all of Prof. Salerno’s analyses or embrace all of his conclusions, every chapter in his anthology is lucid, interesting, reflective and thought-provoking. – Steve H. Hanke, The Johns Hopkins University
A must-read in these times of monetary and financial crisis. Joseph Salerno is a grand master of monetary economics, unparalleled in combining state-of-the-art theory with profound knowledge of the history of economic thought, and a balanced judgment of policy issues. – Jorg Guido Hulsmann, University of Paris, Angers
It is the questions asked as much as the answers given that make this such an excellent collection. The articles combine deep historical knowledge, a penetrating grasp of the relevant theory and a strikingly clear writing style to shed light on a host of issues that need to be better understood if we are to get out of, and thereafter stay out of, the economic problems traditional policies continuously create. – Steven Kates, RMIT University, Melbourne, Australia
“Money, Sound and Unsound” by Joseph Salerno is modern Austrian monetary economics at its best. It appears at a time when monetary policy is about to commit again all the errors of the past that are so clearly exposed in this book. – Antony Mueller, Instituto Ludwig von Mises Brasil
This tome covers nearly thirty years of important contributions by Professor Salerno defining and defending sound money from its critics and pseudo friends. The volume be a must in the library of anyone, whether scholar, pundit, policy wonk, or educated laymen, who truly wants to understand our current crisis and participate in a meaningful way in a program for a return to sound money. – John P. Cochran, Metropolitan State College of Denver
This is an astoundingly thorough, incisive and even inspired book. It deserves to be mentioned in the same breath as Mises’s The Theory of Money and Credit and Hulsmann’s the Ethics of Money Production. I have known and admired Joe Salerno for many years. May this be the first of many more of his books. If we are to attain monetary sanity, this publication will be one of only a very few that will lead the way. – Walter Block, Loyola University, New Orleans
Now in the midst of financial upheavals the book by Dr Salerno – Money, Sound and Unsound – is an eye opener. The book debunks various fallacies spread by popular media and various experts. The book also provides the reader with the necessary framework of thinking to navigate in the chaotic economic environment. This book is a must not only for the students of economics but also a must for every investor who wants to protect his wealth. – Frank Shostak, Mann Financial
Professor Salerno has written a magnificent book, fascinating and thorough in its scholarship of monetary theory and the history of monetary affairs. It is an indispensable reference for students of monetary economics, a truly “must read”. – Thorsten Polleit, Frankfurt School of Finance & Management
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Great thanks to the Mises Institute for making Professor Salerno’s writings on monetary economics available in a single volume. Hopefully this book will receive the wide readership that it deserves and bring further attention to Professor Salerno’s outstanding contributions.
In addition, hopefully the volume will produce greater appreciation of the veracity of the Mises/Rothbard theory of money and banking and of Hayek’s contributions to Austrian business cycle theory. Money and banking is perhaps the area of mainstream economics that contains the most widespread and pernicious fallacies, and Professor Salerno’s writings highlight a much needed path to economic truth.
Awesome addition to the bookstore.
Will there be a kindle or epub edition?
This is great; many, many thanks to the Mises Institute for putting out so many great works like this. I would love to see a point-counterpoint collection of some of the controversies we’ve seen on the blog recently, re. free banking vs. 100% reserves. The top Austrians (eg, Huelsmann, Horwitz, etc) going at it, in a scholarly format.
Excellent idea! I second the motion!
I “third” the motion. I’d like to see some work that presents both of these sides of the issue objectively and intelligently. Right now, I’m on the free-banking side, but I remain open-minded to the possibility that I’m wrong on this matter.
Cheers,
Alex Peak
Beefcake, that would be awesome!
Money as property protected as a right by law; flowing in the market; bringing order to what seemed chaotic; giving people the power to easily act on their subjective choices; and also transforming into a capital structure that is congruent with time preferences.
Question: Why is money regarded as just a unit of necessity?
Yep. More in-house publishing.
Like Dr Horwitz said, Joe Salerno is a joke scholar.
Publish something a real journal.
http://www.coordinationproblem.org/2010/08/austrian-economics-and-the-secondary-literature.html
Who Can Assess Original Contributions To Economic Science?
Is there any dishonor in being an economic historian? Are there economic historians who do not want to be considered economic historians and who would rather be known as economists? Is the difference between an economic historian and an economist specifically related to original contributions to economic science rather than commentary on the contributions of others?
These are the issues being pondered. Who is the judge to decide what is original? Is there a built-in snobbery among academic economists where the same hoops of fire that they must jump through – because of their institutional requirements – are made the criteria for assessing ‘original?’
Well, I guess I will rock your world then! Divine economy theory is an original contribution to economic science and it stands ready and able for any and all scrutiny!!! Who among you dares to examine it?
Above (http://www.coordinationproblem.org/2010/08/austrian-economics-and-the-secondary-literature.html), it is stated over and over that the science of economics has to advance and cannot just look back. OK let’s see if those who say that really believe it.
Submit your divine economics to a real journal wacko
Dear Alex,
Are you the opposite of a bibliophile?
“Alex” appears to be judging the book by its cover. Actually, that’s probably not quite accurate to say, given that it’s a beautiful cover. He or she appears to be judging the book by the third line of text on the cover.
Alex writes, “More in-house publishing.” Does this mean to imply that the LvMI, an organisation known for publishing books–indeed, whose primary function, I would argue, is to publish books–, should be looked at negatively for choosing to publish this book?
Alex writes, “Like Dr Horwitz said, Joe Salerno is a joke scholar.” Having only ever read one essay by Salerno, I am neither in a position to agree or to disagree.
Finally, I do not understand the sentence, “Publish something a real journal.”
Sincerely,
Alex Peak
I noticed the book is no longer available through the Mises Store. Is it no longer available for purchase?
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