ABSTRACT
The second pillar of Hayek’s intellectual emergency equipment was his scheme for the denationalisation of money. Although the Model Constitution would limit the arbitrary power of government with regard to legislation, his money scheme was designed to terminate arbitrary control of the monetary framework. Like his Model Constitution, Hayek’s plan for denationalising money originated in the Constitution of Liberty (White, 1999). It grew from the kernel of the question ‘should we not rely on the spontaneous forces of the market to supply whatever is needed for a satisfactory medium of exchange as we do in most other respects?’ (Hayek, 1960a, p. 324). In that work, Hayek answered in the negative, but the thought clearly persisted. He came to view the scheme as one of the chief means of attaining a form of government founded on The Constitution of Liberty’s core contribution, the conception of liberty as non-domination.
