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.
On The Duty Of Natural Outlaws To Shut Up
Who would join a radical minority movement, and commit him- or herself for life to social obloquy and a marginal existence, for the sake of 20% more bathtubs, or 15% more candy bars? Who will man the barricades either physically or spiritually, for more peanuts or Pepsi?
Austrian Definitions of the Supply of Money
Rothbard explains the concept of the "supply of money."
Austrian Definitions of the Supply of Money
Rothbard explains the concept of the "supply of money."
Salute to Von Mises: For 92 Years He Has Fought the Good Fight
Thanks to Mises, we now understand that the only way that socialists can solve the problem of resource allocation is by adopting capitalism.
Salute to Von Mises: For 92 Years He Has Fought the Good Fight
Thanks to Mises, we now understand that the only way that socialists can solve the problem of resource allocation is by adopting capitalism.
On Foreign Trade
Specialization and foreign trade are good things, even if one party to the transaction could produce everything better and cheaper than the other.
On Foreign Trade
Specialization and foreign trade are good things, even if one party to the transaction could produce everything better and cheaper than the other.
For the Better Economic Life
In an atmosphere of free inquiry and of freedom of the individual to enjoy the fruits of his labor, science here flourished. Elsewhere in the world, it has suffered serious set-backs.
Power Corrupts
It seems to be universal that elected officials are seduced by the fantasy thesis that election to public office endows the official with both power and wisdom.
For the Better Economic Life
In an atmosphere of free inquiry and of freedom of the individual to enjoy the fruits of his labor, science here flourished. Elsewhere in the world, it has suffered serious set-backs.
Power Corrupts
It seems to be universal that elected officials are seduced by the fantasy thesis that election to public office endows the official with both power and wisdom.
War, Peace, and the State
To live liberty, we must realize and demonstrate to the world that libertarian theory can be brought sharply to bear upon all of the world's crucial problems.
War, Peace, and the State
To live liberty, we must realize and demonstrate to the world that libertarian theory can be brought sharply to bear upon all of the world's crucial problems.
A Tribute to F.A. von Hayek
To celebrate Hayek's birthday here is "A tribute to F.A. Hayek" by Ludwig von Mises, May 24, 1962.
A Tribute to F.A. von Hayek
To celebrate Hayek's birthday here is "A tribute to F.A. Hayek" by Ludwig von Mises, May 24, 1962.
A Libertarian Student’s Plea
The Economist’s Duty
Marx’s Theory of Stages: The Withering Away of the State Under Socialism
A Libertarian Student’s Plea
Marx’s Theory of Stages: The Withering Away of the State Under Socialism
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.
