Is There a Glut of Saving?
Can there be such thing as too much saving? Frank Shostak says this is like asking if can we have too much real wealth.
Can there be such thing as too much saving? Frank Shostak says this is like asking if can we have too much real wealth.
The Austrians view is that monopoly came about as privilege, usually granted by royalty, given to a particular person or industry. This process is arbitrary and capricious. Free entry is required in capitalism. There cannot be restrictions on entry, as with doctors.
Price, quantity, profit, and deadweight loss are four criticisms of monopolies.
Banks under a free-banking system, like banks with fractional reserves under any other system, are susceptible to runs. Free-banking theorists maintain that the option clause would be one effective means of dealing with runs on banks.
Richard H. Timberlake A Critique of Monetarist and Austrian Doctrines on the Utility and Value of Money Acrobat 3.0 Import Plug-in
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The literature on free banking has sharply altered its focus in the last two decades.
Yuri Kuznetsov suggests a scenario by which fiat money comes about, a scenario which may be useful for understanding some events in recent Russian history.
From The Review of Austrian Economics Vol. 7, No. 2, 1994.