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.
Legacy of Menger’s Theory of Social Institutions
Menger’s insights about the origin of social structures inspired later contributions in three main areas: spontaneous order, money, and law.
A Torrent of Laws
There is a ceaseless downpour of new laws. Every day some of us, somewhere, are being encumbered or shackled by still more restrictions. There are just too many laws. But how do we tell how many laws are too many, and which ones are pernicious?
A Man for Many Seasons
Henry Hazlitt, author, journalist, editor, reviewer, and economist, has written or edited 18 books and countless articles, editorials, and book reviews. He is renowned as a popularizer of sound economic thinking, as a critic of John Maynard Keynes, and as a contributor to moral philosophy.
A Biography of Henry Hazlitt
"The art of economics consists of looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
A Biography of Henry Hazlitt
"The art of economics consists of looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
Can We Still Avoid Inflation?
Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.
Can We Still Avoid Inflation?
Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.
Private Property, Public Purpose
Contrary to age-old prejudices, the wealth of the rich is not the cause of the poverty of the poor, but helps to alleviate that poverty. No matter whether it is their intention or not, almost anything that the rich can legally do tends to help the poor.
The Right Not To Testify
Whoever wishes to do so, freely and voluntarily. Conscription of witnesses is no more justified than conscription into the armed forces or into any other service or occupation.
The Right Not To Testify
Whoever wishes to do so, freely and voluntarily. Conscription of witnesses is no more justified than conscription into the armed forces or into any other service or occupation.
What We Know and What We Don’t Know about the Firm
Chapter from Per Bylund's The Problem of Production: A New Theory of the Firm
Ludwig von Mises: An Appreciation
Ralph Raico pays homage to Ludwig von Mises and his place in the social sciences.
Ludwig von Mises: An Appreciation
Ralph Raico pays homage to Ludwig von Mises and his place in the social sciences.
A Roundabout Approach to Macroeconmics: Some Autobiographical Reflections
I. Introduction: Setting the Stage
“Roundaboutness” is a concept featured in Austrian capital theory.
A Roundabout Approach to Macroeconmics: Some Autobiographical Reflections
I. Introduction: Setting the Stage
“Roundaboutness” is a concept featured in Austrian capital theory.
The Why of Human Action
Mises: "What I aimed at in writing Human Action was to contribute my share to ... prevent[ing] America from following Europe down the path to annihilation of civilization and prosperity."
The Why of Human Action
Mises: "What I aimed at in writing Human Action was to contribute my share to ... prevent[ing] America from following Europe down the path to annihilation of civilization and prosperity."
Codes to Live By
Hazlitt sees clearly that because capitalism promotes freedom, justice and productivity it has far more right to be called "social" (or "moral") than socialism which in its despotism actually promotes a code of immorality.
Codes to Live By
Hazlitt sees clearly that because capitalism promotes freedom, justice and productivity it has far more right to be called "social" (or "moral") than socialism which in its despotism actually promotes a code of immorality.
Intellectuals and the Marketplace
Chapter 3 of Classical Liberalism and the Austrian School. This chapter is adapted from a paper delivered at the general meeting of the Mont Pèlerin Society, in Cannes, September, 1994.
Dr. Palasek is 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.
