The Cato Journal

The Cato Journal is a leading free-market public policy journal. The Cato Journal features articles discussing politics and the economy of interest to scholars and professionals but accessible to a general audience as well.

Articles from Vol. 26, No. 3, Fall

China's Stock Market: A Marriage of Capitalism and Socialism
The rise of China's stock market during the 1990s was nothing short of breathtaking. For more than 30 years after 1949, China was a centrally planned economy in which virtually all enterprises were state owned or collectively owned. Investments were...
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Creating a Policy Environment for Entrepreneurs
Entrepreneurship is often viewed as a catalyst for economic growth. Through innovation, hard work, and a willingness to accept financial risk, the entrepreneur takes advantage of previously undiscovered opportunities for arbitrage and profit (Kirzner...
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Does "Starve the Beast" Work?
Starve-the-beast proponents believe that in order to tame the beast, one needs to starve it, with the beast being an obvious reference to Thomas Hobbes's Leviathan depiction of an out-of-control state apparatus. The idea of tax reductions as a way...
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Economic Freedom and Development: New Calculations and Interpretations
For some time there has been a debate about the effect of economic freedom on economic growth and development (Beach and Davis 1999: 10; de Haan and Siermann 1998; de Haan and Sturm 2000; Edwards 1998; Goldsmith 1997; Gwartney, Lawson, and Block 1996:...
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Independent Central Banks: New and Old
In the 1990s, several governments gave their central banks operational independence to pursue low inflation, and steps were taken to make the new monetary policy more credible by making it more transparent (Bernanke et al. 1999). The governor of the...
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Limiting Government: The Failure of "Starve the Beast"
For nearly 30 years, many Republicans have argued that the most effective way to control federal government spending is to "starve the beast" by reducing federal tax revenues. Moreover, two Nobel laureate economists, Milton Friedman and Gary Becker,...
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Regulation, Investment, and Growth across Countries
Numerous studies have explored the relationship between economic freedom and long-run economic growth across countries. (1) One particular aspect of economic freedom that has received relatively little attention in the empirical growth literature,...
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Science, Public Policy, and Global Warming: Rethinking the Market-Liberal Position
A survey of market-liberal or libertarian publications and websites finds a large and growing literature on the issue of global warming. Almost without exception, this literature conveys a comforting message: Our planet is in good health. The markets...
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The Case for Market-Based Regulation
In this article, we reconsider the rationale for government regulation of markets. We begin by identifying markets as governed not only by prices but also by evolved institutions, rules, and standards. We then analyze how this complex order regulates...
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Tobacco Control Programs and Tobacco Consumption
The Centers for Disease Control and Prevention (CDC) believe that adequate funding of tobacco control programs by all 50 states would reduce the number of adults who smoke by promoting quitting, preventing young people from ever starting, reducing...
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U.S.-China Relations: The Case for Economic Liberalism
In its 2005 Report to Congress, the U.S.-China Economic and Security Review Commission--also known as the U.S.--China Commission (USCC)--recommended that China appreciate its currency, the renminbi (RMB), "by at least 25 percent against the U.S. dollar"...
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