Saturday, April 28, 2007

Panama Has No Central Bank

I just found a fascinating (to me at least) story on the history of Panama's monetary system at Mises.org. The main factor, apparently, in Panama breaking away from Colombia was a disagreement over fiat money.

The country, now under democratic rule, is experiencing its 4th year of market economic growth well above 7%. So the policy makers who have said that abolition of the central bank is unfeasible need only look to Panama's macroeconomic environment, which has been favorable for over 100 years, to realize that it is, in fact, not only possible, but very beneficial.

0 comments:

Template Designed by Douglas Bowman - Updated to Beta by: Blogger Team
Modified for 3-Column Layout by Hoctro