Central Banks as Sources of Financial Instability
By George A. Selgin
This article appeared in the Spring 2010 issue of The Independent Review


The present financial crisis shows how central banks can fuel the financial booms that make severe busts possible. Unfortunately, theoretical discussions of central banking badly neglect its role in fostering financial instability, in part because they ignore its history and political origins.

Other Independent Review articles by George A. Selgin
    Fall 2013   The Financial Crisis and the Free Market Solution
    Summer 2011   They Stumble Who Run Fast: Roubini and Mihm’s Crisis Economics
    Summer 2000   Should We Let Banks Create Money?

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