What Has Government Done to Our Money?

What Has Government Done to Our Money?

By Murray Rothbard
Published by Ludwig von Mises Institute

"The prognosis for the dollar and for the international monetary system is grim indeed. Without radical reform, the international money system is fated to shift back and forth between fixed and fluctuating exchange rates with each system posing unsolved problems, working badly, and finally disintegrating.

And fueling this disintegration will be the continued inflation of the supply of dollars and hence of American prices which show no sign of abating. The prospect for the future is accelerating and eventually runaway inflation at home, accompanied by monetary breakdown and economic warfare abroad.

This prognosis can only be changed by a drastic alteration of the American and world monetary system: by the return to a free market commodity money such as gold, and by removing government totally from the monetary scene."

—Murray N. Rothbard

Book Overview

Murray N. Rothbard’s What Has Government Done to Our Money?, published by the Ludwig von Mises Institute, is an influential work for those exploring money’s development, government intervention, and the economic importance of a gold standard.

This 1963 classic is both accessible and thorough, tracing the origins of money from barter systems to the modern use of fiat currency, while strongly advocating for a return to a stable, gold-backed monetary system.

Chapter Summaries

I. Introduction

Rothbard opens by explaining the critical importance of understanding the history of money for grasping today’s economic challenges.

II. Money in a Free Society

This chapter covers:

• The Value of Exchange, emphasizing how money simplifies transactions.
• The limitations of Barter and the evolution to Indirect Exchange and the use of Money.
• Key concepts, such as the Monetary Unit, Private Coinage, and the ideal Shape of Money.
• The stability and security offered by sound money, including storage via Money Warehouses.
• Summary: A recap on sound money’s vital role in a free society.

III. Government Meddling With Money

Rothbard discusses:

• Government Revenue and inflation, showing how a Compulsory Monopoly of the Mint enables state manipulation of currency.
• Gresham’s Law, explaining how government-imposed legal tender laws drive out sound money, covering Bimetallism and Central Banking.
• The impact of Fiat Money, revealing how it destabilizes economies through unchecked inflation.

IV. The Monetary Breakdown of the West

Rothbard presents the historical phases of Western monetary systems:

• The stable Classical Gold Standard (1815–1914).
• The transition to fiat currency due to World War I.
• Later phases, from Gold Exchange Standards to the current era of fiat currencies, following the unraveling of the Bretton Woods system.

Why This Book Matters

Rothbard, with the backing of the Mises Institute, convincingly argues that fiat currency ultimately undermines economic stability.

For those interested in economic policy, the gold standard, and sound money, this is an essential resource.

Rothbard’s work has shaped perspectives on monetary reform, resonating strongly with proponents of economic freedom and limited government.

Buy Your Copy of Murray Rothbard's What Has Government Done to Our Money Today!

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