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.
Banks Cannot Create Money
By Jorg Guido Hulsmann
This
article
appeared in
the Summer 2000 issue of The Independent Review.
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(10 pages)
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| Other Independent Review articles by Jorg Guido Hulsmann | |
| Winter 2002/03 | Has Fractional-Reserve Banking Really Passed the Market Test? |
