The Law of National Guaranteed Banks in Argentina, 18871890
Free-Banking Failure or Regulatory Failure?
By Nicolás Cachanosky
Many analysts have characterized Argentinas four years under the Law of National Guaranteed Banks as a period of free banking, which suggestsincorrectlythat 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|
|Winter 2017/18||Money:Free and Unfree|
|Fall 2015||Money, Banking, and the Business Cycle. Volume 1:Integrating Theory and Practice. Volume 2: Remedies and Alternative Theories|
|Winter 2014/15||A Proposal of Monetary Reform for Argentina:Flexible Dollarization and Free Banking|