The Money Multiplier: Myth or Reality?

Mises DailyDecember 16, 2002
The existence of the money multiplier is the outcome of fractional reserve banking, writes Frank Shostak, which the current banking system makes possible. The money multiplier is not only real; it is a good tool to help us understand the process by which the banking system creates inflationary...

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"Banish Fractional Reserve Banking for Real Reform"

BlogJune 25, 2013

. . . says Thomas Mayer, a former IMF economist and former Chief Economist of Deutsche Bank Group and Head of DB Research, and now a Deutcshe Bank Senior Advisor. In a letter today to the Financial Times, Mayer writes:...

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Banks, Central Banking and Economic Instability

BlogJune 30, 2012

Oral Argument at Hearing entitled “Fractional Reserve Banking and the Federal Reserve: The Economic Consequences of High-Powered Money” Thursday, June 28, 2012
Domestic Monetary Policy and Technology by John P. Cochran....

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Guido Hülsmann's "Revolutionary Essay" on Fractional-Reserve Banking

BlogJuly 29, 2014

In a must-read post on Zero-Hedge, Tyler Durden highlights Guido Hülsmann's neglected 2003 article "Has...

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The Faults of Fractional-Reserve Banking

Mises DailyDecember 23, 2010
Fiat money — or, to be more precise, its production — is already a violation of the free-market principle; and fractional-reserve banking amounts to leveraging the economic consequences of fiat money. Austrians favor a money that is freely chosen and operates by market principles.

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The Role of Fractional-Reserve Banking and Financial Intermediation in the Money Supply Process: Keynes and the Austrians

This article presents two alternative interpretations of the role of banks in the monetary transmission process. The interpretation based on the work of Mises, Hayek, and Rothbard leads to the conclusion that central banking and monetary policy are "generators of the business cycle." The...

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Money, Banking, and the Federal Reserve

JournalsJanuary 24, 2008
The complete transcript of the Institute's famous documentary on the Federal Reserve...

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Legal Tender Laws and Fractional-Reserve Banking

This article will explore the economics of legal tender laws, arguing that they are not only a necessary prerequisite of paper money, but also benefit fractional-reserve banking. Such laws make paper money and fractional-reserve banking more widespread than they would otherwise be. Thus, legal...

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Money, Bank Credit, and Economic Cycles

BooksMarch 15, 2006
The three years since the publication of the previous English edition of Money, Bank Credit, and Economic Cycles have seen a continuation of the economic recession process set in motion after the 2007 financial crisis. This process has consisted of the inevitable microeconomic readjustment and...

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A Short History of Paper Money and Banking in the United States

BooksAugust 30, 2007
Written in 1833, A Short History of Paper Money and Banking in the United States was a major blast against the trend towards inflation and paper money.

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Fractional Reserve Banking Paper

BlogJuly 16, 2013

You may have missed this paper by Bagus, Howden, and Block on Fractional Reserve Banking: Deposits, Loans, and Banking: Clarifying the Debate...

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Fractional Reserves and Economic Instability

Mises DailyJuly 12, 2012
Better economists recognize fractional-reserve banking as a major source of financial and economic instability.

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Organization of Debt Into Currency and Other Papers

BooksMarch 21, 2006
Princeton, NJ: D. Van Nostrand Company, Inc., 1964. From Murray Rothbard's History of Economic Thought: "One of the most unusual — and most advanced — of the American admirers of Fredéric Bastiat was the Boston merchant Charles Holt Carroll (1799–1890). A staunch adherent...

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The Cyprus Deal and the Unraveling of Fractional-Reserve Banking

BlogMarch 27, 2013

The “Cyprus deal” as it has been widely referred to in the media may mark the next to last act in the the slow motion collapse of fractional-reserve banking that began with the implosion of the savings-and-loan industry in the U.S. in the late 1980s. This trend continued with the...

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George Selgin to Paul Krugman: "I Am a Former Austrian and I Do Believe in Fractional Reserve Banking -- Honest"

BlogSeptember 19, 2012

Well, not exactly his words, but this was the gist of George's bizarre and irrelevant comment on Krugman's...

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Fractional Reserve Banking

Audio/VideoOctober 26, 2012
Presented at the Mises Circle in Manhattan, hosted by the Ludwig von Mises Institute and sponsored by the Story Garschina Charitable Fund, and Anonymous Donor. Recorded on Friday, 14 September 2012, at the Metropolitan Club in New York City.

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A Critical Note on Fractional-Reserve Free Banking

The practice of fractional-reserve banking is the main factor responsible for the emergence and development of the central bank.

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Government debates fractional-reserve banking

BlogNovember 26, 2014

Three cheers to Steve Baker, Conservative MP from Wycombe, for raising the delicate yet important of matter of fractional-reserve banking in Britain's House of Commons.

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