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George Selgin: The Untold History of The Federal Reserve

May 29, 2017

Cato Institute senior fellow George Selgin explains how The Fed has ruled the American economy, creating disorder instead of protecting people from turmoil.

In this episode of the weekly Budget & Tax News podcast, Heartland Institute research fellow Jesse Hathaway is joined by Cato Institute
senior fellow George Selgin to tell the untold history of how government institutions, such as the Federal Reserve—also known as "The Fed"—have ruled the American financial markets, advancing their own interests, instead of keeping the markets stable and promoting the best interests of everyday people.

Selgin, a professor emeritus of economics at the University of Georgia and director of Cato's Center for Monetary and Financial Alternatives, explains why American consumers have experienced so many crippling financial crises, monetary roller-coaster rides, and financial troubles throughout its history: government interventionism.

Instead of achieving its stated goals of stabilizing economic tides, Selgin says, The Fed has worsened the problems it was created to solve, creating a perfect storm of regulatory capture unnecessarily rocking everyday people. Financial disorder is not solved by more government, he says, but created by bigger government, dispelling the myth of The Fed as a stabilizing force existing for our own good.
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Jesse Hathaway is a policy advisor for budget and tax issues at The Heartland Institute. @JesseinOH