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  • P-ISSN 1738-656X

한국개발연구. Vol. 27, No. 2, December 2005, pp. 1-43

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Why Do Economists Argue 'for' of 'against' Government's Roles in a Monetary System?

In seok Shin

Author & Article History

Manuscript .


This paper examines works of F. Hayek and M. Friedman on monetary and financial policies. This paper highlights their differences, and asks what yielded them. It also shows there exists a gap between young Hayek and old Hayek, which cannot be explained in terms of his view on monetary theories. It further shows that Friedman's argument for '100% reserve bank' was not based on his monetary theories. Differences between Hayek and Friedman despite their common political belief, Hayek's transition, gaps between theories and policy views found in Hayek and Friedman-this paper argues that these facts can be best explained by Kuhn's paradigm theory. This paper concludes that truthfulness of a thesis on the public sector's role in the monetary system is subject to relativism.


패러다임(paradigm), 금융시장 실패(Financial Market Failure), 공적기구 실패(Government Failure)

JEL Code

A12, B31, E50

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