PUBLICATIONS
Books
The Independent Review
(Quarterly Journal)
Policy Reports
The Lighthouse
(Email Newsletter)
Commentary Articles
News Releases
Audio and Visual Programs
The Independent
(Quarterly Newsletter)
Research Articles
Working Papers
Course Adoption Program




Subscribe



Commentary
Facebook Facebook Facebook Facebook

Contribute
Your participation will advance liberty. Join us as an Independent Institute member.



Contact Us
The Independent Institute
100 Swan Way
Oakland, CA 94621-1428

510-632-1366 Phone
510-568-6040 Fax
Send us email


Interested in working with us?  Click here for more information.

Bookmark and Share    

Has Fractional-Reserve Banking Really Passed the Market Test?
By Jorg Guido Hulsmann
This article appeared in the Winter 2003 issue of The Independent Review


Abstract

Some economists suggest that because fractional-reserve banking is the rule in Western banking systems today, it has passed the “market test,” whereas the alternative arrangement of 100 percent reserves for money titles has not. In reality, the present-day dominance of fractional-reserve banking is not a matter of having passed the market test but of legal restrictions that have hindered product differentiation in banking.



Other Independent Review articles by Jorg Guido Hulsmann
    Summer 2000   Banks Cannot Create Money


Volume 7 Number 3
Winter 2003

Subscribe Today

Buy Single Issues

Independent Review Issues

Articles by Subject

Independent Review Articles on Related Subjects




Home | About Us | Blogs | Issues | Newsroom | Multimedia | Events | Publications | Centers | Students | Store | Donate

Product Catalog | RSS | Jobs | Course Adoption | Links | Privacy Policy | Site Map
Facebook Facebook Facebook Facebook
Copyright 2014 The Independent Institute