Richard Timberlake
Encyclopedia
Richard Timberlake, born 1922, is an economist who was Professor Emeritus of Economics at the University of Georgia
for much of his career. He also has become a leading advocate of free banking
, the belief that money should be issued by private companies, not by a government monopoly.
, Timberlake was in the US military in World War II
. He became a Pilot in the U.S. Air Forces and flew 26 missions as a co-pilot in the 8th Air Force. He was awarded three Purple Hearts. He obtained a Bachelor of Arts
at Kenyon College
in 1946, a Master's at Columbia University
in 1950, and a Ph.D in 1959 from the University of Chicago
where he studied under [Milton Friedman] and Earl J. Hamilton. He then taught economics at Muhlenberg College
, Norwich University
, Renssalear Polytechnic, Florida State University
, and the University of Georgia
from 1963–1990, when he retired.
He is married, with five children.
Timberlake's research has been on the history of money, central banking and monetary policy.
's idea of The Denationalization of Money
, extending and expanding upon it in coordination with the free banking
movement. He believes that, instead of a government-imposed central bank
, there should be a free market in the production of money, with banks choosing how to issue their own, competing currencies.
While followers of Murray Rothbard
advocate that the government supervise a gold dollar
, in effect mandating that everyone use gold, and also want government prohibition on fractional-reserve banks, the Free Banking advocates consider this too much government intervention, distorting the economy. They prefer to let free markets regulate how money is issued and banks are managed. If a bank behaves in a way that is unprofitable, it will go out of business.
Timberlake also examined the causes of the Great Depression
, and emphasized the switch of the Federal Reserve, starting in 1929, to the Real bills doctrine
of money management, and an anti-speculation policy that severely reduced bank reserves and the amount of deposit money that the banks could create. The money supply contracted by 30% in four years, something that no market economy could tolerate. Along with Hayek of the Austrian school
, Milton Friedman
of the Chicago school
, and even the Keynesians, Timberlake sees this Fed policy as the primary cause of the Great Depression http://econjwatch.org/articles/gold-standards-and-the-real-bills-doctrine-in-us-monetary-policy.
However, Timberlake does not reject the gold standard
. While many economists blame the gold standard for the monetary collapse, Timberlake cites data that refutes the validity of their complaints. He shows that the Fed Banks and U.S. Treasury had plenty of gold in the 1929-1933 period. Timberlake concludes that government interference with gold standard adjustments caused most of the trouble in the past, producing cycles of money growth and deflation, panic and depression.
presidential campaign, and written/signed open letters advocating various positions, such as school choice
and rejection of policies that would have raised taxes.
Articles in:
University of Georgia
The University of Georgia is a public research university located in Athens, Georgia, United States. Founded in 1785, it is the oldest and largest of the state's institutions of higher learning and is one of multiple schools to claim the title of the oldest public university in the United States...
for much of his career. He also has become a leading advocate of free banking
Free banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
, the belief that money should be issued by private companies, not by a government monopoly.
History
Born in Steubenville, OhioSteubenville, Ohio
Steubenville is a city located along the Ohio River in Jefferson County, Ohio on the Ohio-West Virginia border in the United States. It is the political county seat of Jefferson County. It is also a principal city of the Weirton–Steubenville, WV-OH Metropolitan Statistical Area...
, Timberlake was in the US military in World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. He became a Pilot in the U.S. Air Forces and flew 26 missions as a co-pilot in the 8th Air Force. He was awarded three Purple Hearts. He obtained a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
at Kenyon College
Kenyon College
Kenyon College is a private liberal arts college in Gambier, Ohio, founded in 1824 by Bishop Philander Chase of The Episcopal Church, in parallel with the Bexley Hall seminary. It is the oldest private college in Ohio...
in 1946, a Master's at Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
in 1950, and a Ph.D in 1959 from the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
where he studied under [Milton Friedman] and Earl J. Hamilton. He then taught economics at Muhlenberg College
Muhlenberg College
Muhlenberg College is a private liberal arts college located in Allentown, Pennsylvania, United States. Founded in 1848, Muhlenberg is affiliated with the Evangelical Lutheran Church in America and is named for Henry Melchior Muhlenberg, the patriarch of the Lutheran Church in America.- History...
, Norwich University
Norwich University
Norwich University is a private university located in Northfield, Vermont . The university was founded in 1819 at Norwich, Vermont, as the American Literary, Scientific and Military Academy. It is the oldest of six Senior Military Colleges, and is recognized by the United States Department of...
, Renssalear Polytechnic, Florida State University
Florida State University
The Florida State University is a space-grant and sea-grant public university located in Tallahassee, Florida, United States. It is a comprehensive doctoral research university with medical programs and significant research activity as determined by the Carnegie Foundation...
, and the University of Georgia
University of Georgia
The University of Georgia is a public research university located in Athens, Georgia, United States. Founded in 1785, it is the oldest and largest of the state's institutions of higher learning and is one of multiple schools to claim the title of the oldest public university in the United States...
from 1963–1990, when he retired.
He is married, with five children.
Timberlake's research has been on the history of money, central banking and monetary policy.
Ideas
Timberlake's research on the development of private moneys occurred at the time of Friedrich HayekFriedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
's idea of The Denationalization of Money
The Denationalization of Money
The Denationalization of Money is a paper written by Friedrich Hayek, and published in 1977, in which he advocated the establishment of a free market in money.-Message:...
, extending and expanding upon it in coordination with the free banking
Free banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
movement. He believes that, instead of a government-imposed central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
, there should be a free market in the production of money, with banks choosing how to issue their own, competing currencies.
While followers of Murray Rothbard
Murray Rothbard
Murray Newton Rothbard was an American author and economist of the Austrian School who helped define capitalist libertarianism and popularized a form of free-market anarchism he termed "anarcho-capitalism." Rothbard wrote over twenty books and is considered a centrally important figure in the...
advocate that the government supervise a gold dollar
Gold dollar
The gold dollar was a United States dollar coin produced from 1849 to 1889. Composed of 90% pure gold, it was the smallest denomination of gold currency ever produced by the United States federal government...
, in effect mandating that everyone use gold, and also want government prohibition on fractional-reserve banks, the Free Banking advocates consider this too much government intervention, distorting the economy. They prefer to let free markets regulate how money is issued and banks are managed. If a bank behaves in a way that is unprofitable, it will go out of business.
Timberlake also examined the causes of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, and emphasized the switch of the Federal Reserve, starting in 1929, to the Real bills doctrine
Real bills doctrine
The real bills doctrine holds that issuing money in exchange for real bills is not inflationary. It is best known as "the decried doctrine of the old Bank Directors of 1810: that so long as a bank issues its notes only in the discount of good bills, at not more than sixty days’ date, it cannot go...
of money management, and an anti-speculation policy that severely reduced bank reserves and the amount of deposit money that the banks could create. The money supply contracted by 30% in four years, something that no market economy could tolerate. Along with Hayek of the Austrian school
Austrian School
The Austrian School of economics is a heterodox school of economic thought. It advocates methodological individualism in interpreting economic developments , the theory that money is non-neutral, the theory that the capital structure of economies consists of heterogeneous goods that have...
, Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
of the Chicago school
Chicago school
Chicago school may refer to:* Chicago school * Chicago school * Chicago school * Chicago school * Chicago school * Chicago School of Professional Psychology...
, and even the Keynesians, Timberlake sees this Fed policy as the primary cause of the Great Depression http://econjwatch.org/articles/gold-standards-and-the-real-bills-doctrine-in-us-monetary-policy.
However, Timberlake does not reject the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
. While many economists blame the gold standard for the monetary collapse, Timberlake cites data that refutes the validity of their complaints. He shows that the Fed Banks and U.S. Treasury had plenty of gold in the 1929-1933 period. Timberlake concludes that government interference with gold standard adjustments caused most of the trouble in the past, producing cycles of money growth and deflation, panic and depression.
Politics
Timberlake has been active in politics. He was involved in the Harry BrowneHarry Browne
Harry Browne was an American libertarian writer, politician, and free-market investment analyst. He ran for President of the United States as the nominee of the Libertarian Party in 1996 and 2000....
presidential campaign, and written/signed open letters advocating various positions, such as school choice
School choice
School choice is a term used to describe a wide array of programs aimed at giving families the opportunity to choose the school their children will attend. As a matter of form, school choice does not give preference to one form of schooling or another, rather manifests itself whenever a student...
and rejection of policies that would have raised taxes.
Works
- Money and Banking, with Edward Selby (1972)
- The Origins of Central Banking in the United States (1978)
- Gold, Greenbacks, and the Constitution (1991)
- Money and the Nation State, with Kevin Dowd (1998)
- Monetary Policy in the United States: An Intellectual and Institutional History (1993)
- They Never Saw Me Then (2002)
Articles in:
- The New Palgrave Dictionary of Money and Finance
- The Encyclopedia of Business History and Biography
What is most important to understand is that the contraction [of the money supply] and Depression were not economic events, but the fruits of political decisions made by agencies of the federal government.
-- Richard H. Timberlake Jr. in the Objectivist Center's Navigator (January 2001)