Archive for Banking

Response to Selgin on Fractional Reserve Banking and the Business Cycle, Part I

George Selgin has a 3-part series (I, II, and III) at Alt-M taking people (like me) to task for claiming that FRB per se causes the boom-bust cycle as described by Mises/Hayek. To be clear, George is putting aside the issue of whether FRB is fraud, and is just focusing on the economics. (He thinks […]

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The Myth of Fed Independence

My latest article is feisty. It sounds like I’m defending Trump and then…BAM! I go full Rothbard. Trump committed a faux pas with his public complaints about the Fed. But his actual “mistake” was in letting the American people in on a dirty secret: The central bank is by its very nature a political institution […]

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Further Thoughts on Fractional Reserve Banking and Simple Theft

Again, it looks like I’m loading the deck by saying “FRB is like a mugger,” but that’s not the motivation for this analogy… If you haven’t already read it, you should check out my previous post, where I set up a thought experiment to work through the mechanics of FRB, and how it might (or […]

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A Thought Experiment on Fractional Reserve Banking

Enrico in the comments of my FRB lecture writes: “if someone lends 100$ to a bank for a fixed time period, and then the bank makes a loan of 90$, no boom&bust cycle will happen. The reason is that the 90$ loan granted by the bank is “backed” by (at least) 90$ real savings from […]

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Rothbardians vs. “Free Bankers”

This was a new talk I gave at Mises U this year. Among other novelties, it contains an exchange between Dr. Evil and his subordinate, #2.

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Lara-Murphy Interview With Scott Horton

Because Scott is one of the leading foreign policy experts from a libertarian perspective, we decided to make his interview in the LMR publicly available. Scott talks about central banking and war, and then specifically about Afghanistan and the Iran deal.

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The Slugfest Continues: My Article on the FRB Debate With Selgin

My one regret in the Soho Forum debate with George Selgin–besides the fact that he won according to Oxford rules–is that we didn’t have time to spell out our respective positions a bit more clearly. For example, a lot of people on social media assumed I thought (a) fractional reserve banking was fraudulent and (b) […]

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My Debate With George Selgin on Fractional Reserve Banking

A good time had by all. Note that comedian Dave Smith warmed the crowd up before we began, and he had a joke in there about a short Mexican guy staring him down. (I allude to the joke twice during the debate; I’m just explaining where that is coming from.)

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