Enlarge The Federal Reserve should be abolished," writes Ron Paul , "because it is immoral, unconstitutional, impractical, promotes bad economics, and undermines liberty." This is the thesis of Paul's End the Fed (Grand Central Publishing, $21.99, 224 pages), the Texas congressman's case against the Federal Reserve. The title was taken from a slogan that Paul heard chanted at various rallies and conventions, filling him with hope that monetary policy has become a subject worthy of popular protest. Many people consider the Fed an "indispensable institution," but few know what the central bank actually does. For example, the Fed "can create trillions of dollars and distribute them to its cronies without congressional oversight," writes Paul, a former GOP presidential candidate. Creating an endless supply of money is the worst offense of the Fed, an institution that Paul believes is the root of many of the nation's problems, including: •A monetary policy that benefits bankers, rather than the common man. The 1910 meeting where the idea for the Federal Reserve was drafted involved bankers and government officials working in secrecy on Jekyll Island off the Georgia coast. •Giving too-big-to-fail banks little reason to pursue efforts toward efficiency because the Fed is there to save them in a crisis. •Giving government a blank check with which to wage war. When governments have to finance wars without central bank cash infusions, they're forced to economize on resources and end the conflict as soon as possible. Instead, Paul argues, our government, backed by the Fed, is like "an irresponsible teenager with an unlimited line of credit." •Interfering with the ability of the free market to give accurate feedback to borrowers and lenders. Artificially low interest rates can distort signals that borrowers use to assess risk, which can lead to false confidence in the economy and excessive use of capital. •Creating "moral hazard" through market rescue of companies. The sense of responsibility for one's own actions is removed, conditioning business people to believe they can enjoy the rewards of the market, yet pass on the penalties to others. •Fueling inflation by increasing the money supply without regard to the pace of economic growth, thus debasing the currency in much the same way that counterfeiting steals value from every dollar. It's no surprise that Paul, the Libertarian standard bearer, should number among his intellectual influences two legends of the Austrian free-market school of economics, Ludwig von Mises, and Friedrich von Hayek, author of The Road to Serfdom, considered among the most influential books of the 20th century. In Paul's best-case scenario, the Fed would be dismantled. With its demise, he argues, rationality would be restored to monetary policy. With limits on the printing of money, inflation would halt, the dollar would keep its value, and banks and government would spend within their means. In short, the federal government would have to raise money as states do, and face the same balanced-budget constraints. Paul also envisions a return to the gold standard, which was abandoned in 1933, and Americans being able to trade in gold and silver bullion. The book includes transcripts of Paul's conversations with former Fed chairman Alan Greenspan and current occupant Ben Bernanke, which feel more like grandstanding than helpful additions to the book's argument. Still, Paul offers a cogent defense of his position. Readers may question his desire to return to a gold standard, but Paul makes a strong case for the importance of sound monetary policy. To Paul, the small steps we take toward a sound policy begin with curtailing the unchecked power of the Federal Reserve. Seth Brown is a freelance writer and the author of Rhode Island Curiosities. His website is www.RisingPun.com Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more