John Carney, senior editor at CNBC.com, writes, “One stark difference between Austrian Economics and Modern Monetary Theory has to do with their ideas about the origins of money.”
Carney summarizes the two positions, citing The Theory of Money and Credit for the Austrian view. He then says,
In truth, both these theories strike me as incomplete. The Austrian theory has never adequately explained how the government got control of money. Mises and others talk about the government monopolizing coinage but this still doesn’t explain why government money retains its role as the medium of exchange.
Someone needs to give John Carney a belated Christmas present: What Has Government Done to Our Money?
Because Murray Rothbard wrote an entire book on the topic that Mr. Carney claims the Austrians fail to address, we have to conclude that he doesn’t yet have WHGDtOM? in his personal library.
