George Selgin
Encyclopedia
George A. Selgin is a professor of economics
in the Terry College of Business
at the University of Georgia
, a senior fellow at the Cato Institute
in Washington DC, and an associate editor of Econ Journal Watch
.http://www.aier.org/ejw Selgin formerly taught at George Mason University
, the University of Hong Kong, and West Virginia University
.
Selgin's principal research areas are monetary
and banking theory
, monetary history
, and macroeconomics
. He is one of the founders, along with Kevin Dowd and Lawrence H. White
, of the Modern Free Banking
School, which draws its inspiration from the writings of Friedrich Hayek
on denationalization of money and choice in currency. A central claim of the Free Banking School is that the effects of government intervention in monetary systems cannot be properly appreciated except with reference to a theory of monetary laissez-faire
, analogous to the theory of free trade
that informs the modern understanding of the effects of tariffs and other trade barriers. The free bankers argue that, viewed in light of such a theory, financial crises and business cycles are largely attributable to misguided government interference with freely-evolved and competitive monetary arrangements, including legislation granting central bank
s exclusive rights to issue paper currency
.
Selgin is also known for his research on coin
age, including studies of Gresham's Law
and of private minting of coins during Great Britain's Industrial Revolution
, and for his advocacy of a "productivity norm" for monetary policy—a plan that would have policymakers target the growth-rate of nominal gross domestic product
at a level that would allow the overall price level
to decline along with goods' real (unit) costs of production. According to Selgin, by preventing mild deflation in response to productivity
gains, monetary authorities risk inadvertently fueling unsustainable booms or economic bubble
s, setting the stage for consequent busts and recession
.
His twin brother is author and illustrator Peter Selgin
.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
in the Terry College of Business
Terry College of Business
The C. Herman and Mary Virginia Terry College of Business is the business school at the University of Georgia in Athens, Georgia. The Terry College is the flagship business school in the state of Georgia and one of 16 schools and colleges at the oldest state-chartered public university in the...
at the University of Georgia
University of Georgia
The University of Georgia is a public research university located in Athens, Georgia, United States. Founded in 1785, it is the oldest and largest of the state's institutions of higher learning and is one of multiple schools to claim the title of the oldest public university in the United States...
, a senior fellow at the Cato Institute
Cato Institute
The Cato Institute is a libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Edward H. Crane, who remains president and CEO, and Charles Koch, chairman of the board and chief executive officer of the conglomerate Koch Industries, Inc., the largest privately held...
in Washington DC, and an associate editor of Econ Journal Watch
Econ Journal Watch
Econ Journal Watch is a triannual peer-reviewed electronic journal established in 2004. It is published by the Atlas Economic Research Foundation on behalf of the American Institute for Economic Research...
.http://www.aier.org/ejw Selgin formerly taught at George Mason University
George Mason University
George Mason University is a public university based in unincorporated Fairfax County, Virginia, United States, south of and adjacent to the city of Fairfax. Additional campuses are located nearby in Arlington County, Prince William County, and Loudoun County...
, the University of Hong Kong, and West Virginia University
West Virginia University
West Virginia University is a public research university in Morgantown, West Virginia, USA. Other campuses include: West Virginia University at Parkersburg in Parkersburg; West Virginia University Institute of Technology in Montgomery; Potomac State College of West Virginia University in Keyser;...
.
Selgin's principal research areas are monetary
Monetary theory
Monetary economics is a branch of economics that historically prefigured and remains integrally linked to macroeconomics. Monetary economics provides a framework for analyzing money in its functions as a medium of exchange, store of value, and unit of account. It considers how money, for example...
and banking theory
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, monetary history
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
, and macroeconomics
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
. He is one of the founders, along with Kevin Dowd and Lawrence H. White
Lawrence H. White
Lawrence H. White is an Economics Professor at George Mason University who teaches graduate level Monetary Theory and Policy. He is considered an authority on the history and theory of free banking...
, of the Modern Free Banking
Free banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
School, which draws its inspiration from the writings of Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
on denationalization of money and choice in currency. A central claim of the Free Banking School is that the effects of government intervention in monetary systems cannot be properly appreciated except with reference to a theory of monetary laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....
, analogous to the theory of free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
that informs the modern understanding of the effects of tariffs and other trade barriers. The free bankers argue that, viewed in light of such a theory, financial crises and business cycles are largely attributable to misguided government interference with freely-evolved and competitive monetary arrangements, including legislation granting central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
s exclusive rights to issue paper currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
.
Selgin is also known for his research on coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
age, including studies of Gresham's Law
Gresham's Law
Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." It is commonly...
and of private minting of coins during Great Britain's Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
, and for his advocacy of a "productivity norm" for monetary policy—a plan that would have policymakers target the growth-rate of nominal gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
at a level that would allow the overall price level
Price level
A price level is a hypothetical measure of overall prices for some set of goods and services, in a given region during a given interval, normalized relative to some base set...
to decline along with goods' real (unit) costs of production. According to Selgin, by preventing mild deflation in response to productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...
gains, monetary authorities risk inadvertently fueling unsustainable booms or economic bubble
Economic bubble
An economic bubble is "trade in high volumes at prices that are considerably at variance with intrinsic values"...
s, setting the stage for consequent busts and recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
.
His twin brother is author and illustrator Peter Selgin
Peter Selgin
Peter Selgin is an American novelist, short story writer, playwright, essayist, editor, and illustrator. Selgin is currently the at St. Lawrence University in Canton, New York.-Biography:...
.
Books
- Good Money: Birmingham Button Makers, the Royal Mint, and the Beginnings of Modern Coinage (2008). ISBN 978-0-472-11631-7.
- Bank Deregulation and Monetary Order (1996). ISBN 0-415-14056-0.
- Less Than Zero: The Case for a Falling Price Level in a Growing Economy (1997). ISBN 0-255-36402-4.
- Readings in Money and Banking (1995). ISBN 0-536-58930-5.
- The Theory of Free Banking: Money Supply under Competitive Note Issue (1988). ISBN 0-8476-7578-5.
External links
- Selgin's faculty homepage
- Interview of Selgin in the Federal Reserve Bank of RichmondFederal Reserve Bank of RichmondThe Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve located in Richmond, Virginia. It covers the District of Columbia, Maryland, Virginia, North Carolina, South Carolina and most of West Virginia. Branch offices are located in Baltimore, Maryland...
's Region Focus.http://www.richmondfed.org/publications/research/region_focus/2009/winter/full_interview.cfm - EconTalkEconTalkEconTalk is a weekly podcast hosted by professor Russell Roberts at George Mason University. Roberts interviews guests—often professional economists—on topics in economics....
podcast, "Selgin on Free Banking" http://www.econtalk.org/archives/_featuring/george_selgin/ - Selgin on YouTubeYouTubeYouTube is a video-sharing website, created by three former PayPal employees in February 2005, on which users can upload, view and share videos....
, lecture on "The Private Supply of Money" http://www.youtube.com/watch?v=-gn55fTRXZw - George Selgin at Mises.org