Most interpretations of American free banking experiences in the nineteenth century focus on the failure of what is commonly believed to have been an experiment in unregulated banking. In this dissertation completed in 1988, economist Karen Y. Palasek advances the thesis that not only was free banking a strictly regulated system, but the reasons for its failure stem directly from the regulations themselves and from the regulatory ties between bond collateral requirements for competitively issued redeemable banknotes and a large volume of government debt which was essentially used as a reserve by free banks.
To illustrate the impediments presented by free banking laws, Palasek compares free banking experiences in New York to bank experiences in New England under the Suffolk System. She argues that the New England regional banking system that developed under the Suffolk was essentially a laissez-faire banking system, producing stability and safety for noteholders and depositors through market-driven behavioral constraints on the banks. New York, arguably the best example of American free banking, compares unfavorably on both stability and safety to the more laissez-faire system. The implications of this reexamination of free banking and the recent debates over the causes of instability in the free banking era have a bearing on modern reconsideration of deregulation and the self-regulating properties of a laissez-faire monetary system in the areas of stability, safety, and adequacy of banking facilities.
Missing the Mark: Salsman’s Review of the Great Depression
From The Journal of Ayn Rand Studies Vol. 9, No. 2, Spring 2008.
Alan Greenspan: Rand, Republicans, and Austrian Critics
From The Journal of Ayn Rand Studies Vol. 6, No. 2, Spring 2005.
Coase and Kelo: Omnious Parallels and a Reply to Lott on Rothbard on Coase
In its Kelo decision, the Supreme Court upheld Connecticut's decision to use its eminent domain powers to take property from one set of private owners and give it to another set of private owners.
Coase and Kelo: Omnious Parallels and a Reply to Lott on Rothbard on Coase
In its Kelo decision, the Supreme Court upheld Connecticut's decision to use its eminent domain powers to take property from one set of private owners and give it to another set of private owners.
Is There Room for Intellectual Property Rights in Austrian Economics?
Presented at the Austrian Scholars Conference 2008.
Is There Room for Intellectual Property Rights in Austrian Economics?
Presented at the Austrian Scholars Conference 2008.
“ASAD: A Sad Development in Macroeconomic Pedagogy”
Ludwig von Mises Corel PDF Engine Version 11.4.0.100
“ASAD: A Sad Development in Macroeconomic Pedagogy”
Ludwig von Mises Corel PDF Engine Version 11.4.0.100
Money, Banking, and the Federal Reserve
The complete transcript of the Institute's famous documentary on the Federal Reserve.
Money, Banking, and the Federal Reserve
The complete transcript of the Institute's famous documentary on the Federal Reserve.
The 50 Great Pioneers of American Industry
Mises Institute 50 Great Pioneers of American Industry
The 50 Great Pioneers of American Industry
Mises Institute 50 Great Pioneers of American Industry
Ludwig von Mises’s Letter to Rand on Atlas Shrugged
Thanks to George Reisman for sharing this interesting letter with the Institute.
Ludwig von Mises’s Letter to Rand on Atlas Shrugged
Thanks to George Reisman for sharing this interesting letter with the Institute.
One Year After
This scathing address delivered by Dr. Jordan at the Thirtieth Annual Meeting of the National Industrial Conference Board, 16 May 1946, one year after the end of World War II.
One Year After
This scathing address delivered by Dr. Jordan at the Thirtieth Annual Meeting of the National Industrial Conference Board, 16 May 1946, one year after the end of World War II.
Biography of Richard Cantillon (1680-1734)
Indeed, the origins of economic theory itself can be traced to CantilIon. William Stanley Jevons, one of the cofounders of the marginalist revolution, and the economist who is generally credited with rediscovering Cantillon, called the Essai "a systematic and connected treatise, going over in a concise manner nearly the whole field of economics…. It is thus the first treatise on economics." He dubbed the work the "Cradle of Political Economy." Joseph Schumpeter, the great historian of economic thought and student of Eugen von Bohm-Bawerk, described the Essai as "the first systematic penetration of the field of economics." In his treatise on the history of economic thought, Murray N. Rothbard named Cantillon "the founding father of modern economics."
Biography of Richard Cantillon (1680-1734)
Indeed, the origins of economic theory itself can be traced to CantilIon. William Stanley Jevons, one of the cofounders of the marginalist revolution, and the economist who is generally credited with rediscovering Cantillon, called the Essai "a systematic and connected treatise, going over in a concise manner nearly the whole field of economics…. It is thus the first treatise on economics." He dubbed the work the "Cradle of Political Economy." Joseph Schumpeter, the great historian of economic thought and student of Eugen von Bohm-Bawerk, described the Essai as "the first systematic penetration of the field of economics." In his treatise on the history of economic thought, Murray N. Rothbard named Cantillon "the founding father of modern economics."
Biography of Juan de Mariana: The Influence of the Spanish Scholastics (1536-1624)
The prehistory the Austrian School of economics can be found in the works of the Spanish scholastics written in the "Spanish Golden Century."
Dr. Palasek is Assistant Professor of Business at Barton College, and serves as the Director of Educational and Academic Programs at the John Locke Foundation.
The amazing fact is that the great majority of British people are not yet consciously aware that they are living in a very severe economic crisis.
