The Law of National Guaranteed Banks in Argentina, 1887–1890: Free-Banking Failure or Regulatory Failure?
By Nicolás Cachanosky
This article appeared in the Spring 2012 issue of The Independent Review


Many analysts have characterized Argentina’s four years under the Law of National Guaranteed Banks as a period of “free banking,” which suggests—incorrectly—that the financial crisis of 1890 was a failure of free banking. In reality, that law regulated banks and encouraged them to become less solvent.

Other Independent Review articles by Nicolás Cachanosky
    Fall 2015   Money, Banking, and the Business Cycle. Volume 1: Integrating Theory and Practice. Volume 2: Remedies and Alternative Theories
    Winter 2015   A Proposal of Monetary Reform for Argentina: Flexible Dollarization and Free Banking

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