Mises on Monetary Reform: the Private Alternative

This paper discusses Ludwig von Mises's proposals for monetary reform. We will largely focus on technical aspects—the concrete practical steps he recommended—without detailing how these relate to his general conceptions of money and of a sound monetary order. We will highlight two characteristic features of Mises's proposals. One, he stressed the role of the competitive market process and of private initiative in establishing a monetary order based on gold, effective gold coin circulation, and 100% reserve banking. Two, he presented an original scheme for privatizing the control of the money supply.