Topic: Free Banking

Roads to Sound Money

– October 15, 2012

The Sound Money Project of the Atlas Economic Research Foundation is proud to announce the release of its newest publication, Roads to Sound Money. The project is a compilation of essays featuring some of the most visionary, yet practical thinkers on m …


‘Has the Fed Been a Failure?’

– September 25, 2012

That is the provocative title of the lead paper in the prestigious economics publication, the Journal of Macroeconomics. It is authored by George Selgin, William D. Lastrapes, and Lawrence H. White. (Selgin and White are professors, Cato scholars, and …


Let’s Give the Fed Some Competition

– April 6, 2012

The Federal Reserve prints so much money that since it opened its doors in 1914, the dollar has lost more than 90 percent of its value.


Digging Up and Digging Down Gold

– March 30, 2012

The Gold Standard is the worst standard, except for all the others. In a recent post at Nada es Gratis (Nothing is Free), Jesús Fernández-Villaverde discusses a visit to the vault where gold is stored at the New York Fed. The post and subsequent commen …


Monetary Equilibrium and Relative Prices

– February 13, 2012

There’s long been debate on the role of an elastic money supply in achieving monetary equilibrium in a free market. Namely, should the money supply follow a 100-percent reserve requirement on banks or should banks be allowed to make use of fractional r …


Free Banking versus Large-scale Credit Expansion

– December 28, 2011

Observations on the Discussions Concerning Free Banking [This article is excerpted from chapter 17 of Human Action: The Scholar’s Edition and is read by Jeff Riggenbach]


Three Comments on the Gold Standard

– December 12, 2011

The financial crisis in 2008, the uncertainty about the future of the Euro and the doubts on the efficiency of monetary policy has brought some renewed interest in the gold standard as an alternative monetary system; or, at least, as a benchmark to eva …


The First International Financial Crisis: Free Banking Failure or Regulatory Failure?

– December 2, 2011

The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center. …


Saving, Hoarding and Fractional Reserve Banking

– July 28, 2011

Fractional reserves is an important component of financial stability. Most of the financial regulation is aimed to control this aspect of banking practice such that banks do not become insolvent and a contagious set of bank runs gets into the financial …


The Effect of Deposit Insurance on the Good Bank and the Bad Bank

– June 9, 2011

Deposit insurance, it is argued, is needed to cope with inherent fragility of banking and money market. To avoid panics, or financial crisis, a safety net on the system is required. Of course, such safety, is not free. There are not only direct economi …


“The State and 100 Percent Reserve Banking” – Selgin

– May 31, 2011

“Free bankers have been fighting a war on two fronts. On one they face champions of central banking and managed money. On the other they struggle against advocates of 100-percent reserve banking. Although the second front is a lot smaller than the firs …


Are Bank Runs a Problem for laissez-faire Banking?

– April 21, 2011

The problem of bank runs is probably the most serious concern in monetary economics. It is clear that if all clients claim back their depositors together the bank will fail. This situation, it is argued, puts the banks in an unstable position where the …