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.
Entrepreneurship and the Economic Theory of the Firm: Any Gains from Trade?
Presented at the 2004 Austrian Scholars Conference.
Entrepreneurship and the Economic Theory of the Firm: Any Gains from Trade?
Presented at the 2004 Austrian Scholars Conference.
Economic Truths That Endure
A tribute to Ludwig von Mises by Alfred Tella.
Economic Truths That Endure
A tribute to Ludwig von Mises by Alfred Tella.
Friedrich von Wieser and Friedrich A Hayek: The General Equilibrium Tradition in Austrian Economics
Salerno argues that Hayek was a self-conscious adherent of the Wieserian tradition and remained so even after he received the Nobel Prize in 1974, and that he distinguished between this tradition and the Böhm-Bawerkian tradition followed by Ludwig von Mises.
Friedrich von Wieser and Friedrich A Hayek: The General Equilibrium Tradition in Austrian Economics
Salerno argues that Hayek was a self-conscious adherent of the Wieserian tradition and remained so even after he received the Nobel Prize in 1974, and that he distinguished between this tradition and the Böhm-Bawerkian tradition followed by Ludwig von Mises.
The Independent Treasury: Origins, Rationale, and Record, 1846-1861
Philadelphia was the home not only of the first two federal banks, but it was the home of the two libertarian political economists who introduced and defended the independent treasury idea into the public consciousness, and created public pressure for its enactment.
The Independent Treasury: Origins, Rationale, and Record, 1846-1861
Philadelphia was the home not only of the first two federal banks, but it was the home of the two libertarian political economists who introduced and defended the independent treasury idea into the public consciousness, and created public pressure for its enactment.
The Panic of 1837 and the Contraction of 1839-43
The standard interpretation of the Panic of 1837 and subsequent recession blamed state bank monetary inflation abetted by President Jackson's removal of the federal deposits from the Bank of the United States.
The Panic of 1837 and the Contraction of 1839-43
The standard interpretation of the Panic of 1837 and subsequent recession blamed state bank monetary inflation abetted by President Jackson's removal of the federal deposits from the Bank of the United States.
Introduction to Democracy: The God that Failed
World War I marks one of the great watersheds of modern history.
Introduction to Democracy: The God that Failed
World War I marks one of the great watersheds of modern history.
Frank A. Fetter (1863-1949): A Forgotten Giant
Fetter saw "economics as essentially the study of value, and has viewed all economic phenomena as the concrete expression, under varied circumstances, of one uniform theory of value.
Biography of Carl Menger: The Founder of the Austrian School (1840-1921)
Despite the many illustrious forerunners in its six-hundred year prehistory, Carl Menger (1840-1921) was the true and sole founder of the Austrian school of economics proper. He merits this title if for no other reason than that he created the system of value and price theory that constitutes the core of Austrian economic theory. But Menger did more than this: he also originated and consistently applied the correct, praxeological method for pursuing theoretical research in economics. Thus in its method and core theory, Austrian economics always was and will forever remain Mengerian economics.
Frank A. Fetter (1863-1949): A Forgotten Giant
Fetter saw "economics as essentially the study of value, and has viewed all economic phenomena as the concrete expression, under varied circumstances, of one uniform theory of value.
Biography of Carl Menger: The Founder of the Austrian School (1840-1921)
Despite the many illustrious forerunners in its six-hundred year prehistory, Carl Menger (1840-1921) was the true and sole founder of the Austrian school of economics proper. He merits this title if for no other reason than that he created the system of value and price theory that constitutes the core of Austrian economic theory. But Menger did more than this: he also originated and consistently applied the correct, praxeological method for pursuing theoretical research in economics. Thus in its method and core theory, Austrian economics always was and will forever remain Mengerian economics.
Property and Happiness in Thomas Jefferson’s Political Thought
Presented at the 6th Austrian Scholars Conferece, Auburn, March 24–26, 2000.
Property and Happiness in Thomas Jefferson’s Political Thought
Presented at the 6th Austrian Scholars Conferece, Auburn, March 24–26, 2000.
Austrian Economics and Game Theory: a Stocktaking and an Evaluation
Foss discusses the merits and drawbacks of game theory in economics from the perspective of Austrian economics.
Austrian Economics and Game Theory: a Stocktaking and an Evaluation
Foss discusses the merits and drawbacks of game theory in economics from the perspective of Austrian economics.
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.
