Denationalisation of Money proposes choice between competing currencies instead of an exclusive state right of issue.
The book first appeared in 1976. Eliminating inflation is Hayek’s expectation, not an effect of an implemented system demonstrated here. [Hayek — Denationalisation of Money (IEA)]
Users must be able to reject a currency whose issuer loses trust. Several brands alone do not establish this discipline. [Hayek — Denationalization of Money: The Argument Refined] [Hayek — Choice in Currency: A Way to Stop Inflation]
Hayek’s hypothetical bank offers 5 Swiss francs, 5 German marks or 2 dollars per ducat, at the holder’s choice. This is not a current product. [Hayek — Denationalization of Money: The Argument Refined]
He separates this obligation from the intention to stabilise purchasing power against a basket of goods. The basket is not a promise to deliver commodities to the holder. [Hayek — Denationalization of Money: The Argument Refined]
The issuer would respond to demand by changing issuance. Stability of the chosen basket does not mean that every individual price remains unchanged. [Hayek — Denationalization of Money: The Argument Refined]
Hayek distinguishes his proposal from the historical Free Banking debate about notes in one established currency. The number of banks is not the number of currencies. [Hayek — Denationalization of Money: The Argument Refined]
The text explicitly addresses accelerating depreciation of the formerly exclusive currency. Transition is not automatically smooth or costless. [Hayek — Denationalization of Money: The Argument Refined]
When comparing an actual currency, establish who changes supply, what is enforceable and the reference used to measure stability. Marketing does not replace these rules. [Hayek — Denationalization of Money: The Argument Refined]
For the clearest picture, read this entry together with Commodity Money, Free Banking, Fiat money, Friedrich A. Hayek. The reverse links also lead from Free Banking, Friedrich A. Hayek.