Central banking and related institutions were not created de novo but as responses (however misguided) to prior problems caused by fractional-reserve banking. Contrary to Selgin, the only permanent beneficiaries of fractional-reserve banking are the bankers themselves.
Read the Full Article
(PDF, 10 pages)
|Other Independent Review articles by Jorg Guido Hulsmann|
|Winter 2003||Has Fractional-Reserve Banking Really Passed the Market Test?|