Still unanswered quibbles with fractional reserve free banking
نویسندگان
چکیده
منابع مشابه
AgAinst MonetAry DisequilibriuM theory AnD FrActionAl reserve Free bAnking
The theory of monetary disequilibrium, as espoused by Selgin (1988), White (1989), Horwitz (2000), and others, has been used to justify the issuance of fiduciary media under a system of fractional reserve “free” banking. The present paper examines this monetary disequilibrium theory and concludes that it contains numerous errors and logical fallacies. The foundational economic argument in favor...
متن کاملFree Banking and Precautionary Reserves: Some Technical Quibbles
IN THIS ARTICLE we consider an argument put forth by Selgin (1988) in support of the claim that a fractional reserve free banking (FR/FB) system is stable. Selgin argues that, even under an in-concert expansion of fiduciary media by the individual banks, there will be internal mechanisms acting as a brake on such expansion if it is unwarranted by demand to hold such media. Specifically, such ba...
متن کاملModeling the Textbook Fractional Reserve Banking System
Banking systems based on the fractional reserve banking process have been in use for several hundred years. However textbook models of these systems do not include either loan repayments or loan defaults, and predict the evolution over time of a stable, asymptotically converging process governing credit and money supplies to the general economy for which there is no empirical evidence in long r...
متن کاملOn the social usefulness of fractional reserve banking
In this paper we argue that if monetary policy has insufficient deflation, private agents have incentives to set up alternative payment systems like fractionally backed bank deposits, which pay interest on the means of payment. In a competitive environment with free entry, these alternative systems are inherently fragile in the sense that they are subject to socially costly bank runs. These soc...
متن کاملNeurocysticercosis: still some unanswered questions.
Correspondence: Luís dos Ramos Machado; Praça Amadeu Amaral, 47 / conj. 33; 01327-010 São Paulo SP; Brasil. E-mail: [email protected] Conflict of interest: There is no conflict of interest to declare. Received 04 April 2014 Accepted 11 April 2014 Neurocysticercosis (NC), the cerebral infection with Taenia solium, is an important public health problem worldwide. Nevertheless, many important...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Review of Austrian Economics
سال: 2011
ISSN: 0889-3047,1573-7128
DOI: 10.1007/s11138-011-0163-3