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.
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.
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(23 pages)
Banking and FinanceDefense and Foreign PolicyEconomic History and DevelopmentEconomyFiscal Policy/DebtFree Market EconomicsGovernment and PoliticsInternational Economics and DevelopmentLatin AmericaPublic ChoiceTaxes
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