Heritage Fellow Michel Speaks at Cato Institute Monetary Conference
Kristin Schwartz /
The Cato Institute hosted its 32nd annual monetary conference at the organizations’ headquarters on November 6. The goal of the conference was to facilitate a discussion among experts about monetary reform.
“This conference will examine the case for sound money and the reforms needed to realize it,” The Cato Institute said.
The conference brought together many experts from various backgrounds in monetary study. They included Lawrence H. White, economics professor at George Mason University, Patrick Byrne, CEO and Chairman of Overstock.com, and Norbert Michel, research fellow in financial reform at The Heritage Foundation.
The event was a combination of keynote presentations and panel discussions. Speakers addressed topics ranging from Bitcoin and the role of gold in market-based monetary systems to regulatory issues and Fed reform.
Michel spoke on an afternoon panel called “The Path to Fundamental Reform.” Also on the panel were Cato Institute Senior Fellow Gerald P. O’Driscoll Jr., and Judy Shelton, co-director of the Sound Money Project at Atlas Network. MQS Management CEO Bob Gelford moderated the panel.
Michel shared practical steps to monetary policy reform. He noted that the Fed has a much better reputation than actual record in its 100 years of existence. In light of this record, Michel emphasized the need for systemic changes.
The Fed has failed, Michel said, as a regulator, an economic stabilizer, and as a lender of last resort. He suggested that the best way to institute structural changes would be to establish a formal monetary commission.
Michel was optimistic, however, that several near-term improvements could be made outside of a formal commission.
Michel presented nine specific reforms for which there is already widespread agreement. Among his suggestions were reversing quantitative easing, ending the Fed’s emergency lending authority, and removing the Fed’s regulatory role.
“On balance, the Fed has not fulfilled the promises of its founders,” Michel said. Far from stabilizing the economy, the Fed has contributed to economic instability since its founding. Michel suggested that Congress begin implementing these policy reforms to benefit the economy.
Kristin Schwartz is currently a member of the Young Leaders Program at The Heritage Foundation. For more information on interning at Heritage, please click here.