Contemporary monetary institutions are flawed at a foundational level. The reigning paradigm in monetary policy holds up constrained discretion as the preferred operating framework for central banks. But no matter how smart or well-intentioned are central bankers, discretionary policy contains information and incentive problems that make macroeconomic stability systematically unlikely. Furthermore, central bank discretion implicitly violates the basic jurisprudential norms of liberal democracy. Drawing on a wide body of scholarship, this volume presents a novel argument in favor of embedding monetary institutions into a rule of law framework. The authors argue for general, predictable rules to provide a sturdier foundation for economic growth and prosperity. A rule of law approach to monetary policy would remedy the flaws that resulted in misguided monetary responses to the 2007-8 financial crisis and the COVID-19 pandemic. Understanding the case for true monetary rules is the first step toward creating more stable monetary institutions.

Contemporary monetary institutions are flawed at a foundational level. The reigning paradigm in monetary policy holds up constrained discretion as the preferred operating framework for central banks. But no matter how smart or well-intentioned are central bankers, discretionary policy contains information and incentive problems that make macroeconomic stability systematically unlikely. Furthermore, central bank discretion implicitly violates the basic jurisprudential norms of liberal democracy. Drawing on a wide body of scholarship, this volume presents a novel argument in favor of embedding monetary institutions into a rule of law framework. The authors argue for general, predictable rules to provide a sturdier foundation for economic growth and prosperity. A rule of law approach to monetary policy would remedy the flaws that resulted in misguided monetary responses to the 2007-8 financial crisis and the COVID-19 pandemic. Understanding the case for true monetary rules is the first step toward creating more stable monetary institutions.

Why did enduring traditions of economic and political liberty emerge in Western Europe and not elsewhere? Representative democracy, constitutionalism, and the rule of law are crucial for establishing a just and prosperous society, which we usually treat as the fruits of the Renaissance and Enlightenment, as Western European societies put the Dark Ages behind them.In The Medieval Constitution of Liberty, Salter and Young point instead to the constitutional order that characterized the High Middle Ages. They provide a historical account of how this constitutional order evolved following the fall of the Western Roman Empire. This account runs from the settlements of militarized Germanic elites within the imperial frontiers, to the host of successor kingdoms in the sixth and seventh centuries, and  through the short-lived Carolingian empire of the late eighth and ninth centuries and the so-called “feudal anarchy� that followed its demise. Given this unique historical backdrop, Salter and Young consider the resulting structures of political property rights. They argue that the historical reality approximated a constitutional ideal type, which they term polycentric sovereignty. Salter and Young provide a theoretical analysis of polycentric sovereignty, arguing that bargains between political property rights holders within that sort of constitutional order will lead to improvements in governance.