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.
Who Is Benjamin Anderson?
Benjamin Anderson is a rare example of an American economist who wrote in the Austrian tradition long before Ludwig von Mises emigrated to the US.
Mises’s Human Action: Comment
Lionell Robbins The Nature and Significance of Economic Science (1932) First Edition
In Defense of “Extreme Apriorism”
In the sciences of human action, it is impossible to test conclusions. The “facts” of human history are complex ones, resultants of many causes. These causes can only be isolated by theory, theory that is necessarily a priori to these historical facts.
Case for a Genuine Gold Dollar, The
The Gold Standard: Perspectives in the Austrian School. Edited with an Introduction by Llewellyn H. Rockwell, Jr.
Single Tax: Economic and Moral Implications, The
(1997) in The Logic of Action Two, UK: Edward Elgar, pp.294-305.
Ludwig von Mises: Scholar, Creator, Hero
The purpose of this essay is to discuss and celebrate the life and work of one of the great creative minds of our century.
Foreword to The Theory of Money and Credit by Mises
Ludwig von Mises’ The Theory of Money and Credit is, quite simply, one of the outstanding contributions to economic thought in the twentieth
Memorandum on Catholicism, Protestantism, and Capitalism
In this February 1957 memo, Rothbard sets down some thoughts on the Aristotelian background of marginal utility and Austrian economic theory.
Time, Complexity, and Change: Ludwig M. Lachmann’s Contributions to the Theory of Capital
Published in Advances in Austrian Economics, Vol. 3, 1996.
“Hayekian Triangles and Beyond”
in Jack Birner and Rudy van Zijp, eds., Hayek, Coordi
Austrian Capital Theory and the Undeveloped Areas: An Overview
Shenoy Capital and Developing Nations Adobe Acrobat 6.0
“Environmentalism and Economic Freedom: The Case for Private Property Rights”
Walter Block Environmentalism and Economic Freedom Acrobat Distiller 3.0 for Windows
“The Mishnah and Jewish Dirigisme”
Walter Block The Mishnah and Jewish Dirigisme Acrobat Distiller 2.0 for Power Macintosh
On Austrian Value Theory and Economic Calculation
Mahoney argues that although Mises correctly conceived of value as an ordinal relation, precluding the possibility of value imputation, in many of his expositions of the market process he adopts a notion of value as a cardinal thing in explaining the task confronting actors in either the planned or unplanned economy.
On Austrian Value Theory and Economic Calculation
Mahoney argues that although Mises correctly conceived of value as an ordinal relation, precluding the possibility of value imputation, in many of his expositions of the market process he adopts a notion of value as a cardinal thing in explaining the task confronting actors in either the planned or unplanned economy.
Inflationary Deception: How Banks Are Evading Reserve Requirements And Inflating The Money Supply
Hatch explains why a significant monetary inflation is taking place and is laying the foundation for price inflation in the years ahead.
Inflationary Deception: How Banks Are Evading Reserve Requirements And Inflating The Money Supply
Hatch explains why a significant monetary inflation is taking place and is laying the foundation for price inflation in the years ahead.
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.
