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.
Shelley’s Radicalism: The Poet as Economist
Chapter 4 from Literature & the Economics of Liberty: Spontaneous Order in Culture, edited by Paul A. Cantor and Stephen Cox.
Acting Man and Economics
One can't say of the present economic system—one can only describe the past. One cannot predict the future as a result of studying the past. Often economic historians teach history by the label of “economics.” Even though you know everything about the past, you know nothing about the future.
Economics and Its Opponents
Among the great books of mankind are the immortal writings by the Greek philosopher Plato. The Republic and The Laws, written 2300 to 2400 years ago, dealt not only with philosophy, the theory of knowledge, epistemology, but also with social conditions.
Pseudo-Science and Historical Understanding
The word “science” is usually applied only to the natural sciences. There are fundamental differences between the natural sciences and the science of human action, sometimes called social science or history. Among these fundamental differences is the way in which knowledge is acquired.
How Keynes Took Over the World
Chapter "Selling the General Theory" in Murray Rothbard's Keynes, the Man.
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.
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.
The Group vs. the Collective
Excerpt from Ludwig von Mises Epistemological Problems of Economics, chap. 1
The Gold Standard Act of 1900 and After
Chapter for Murray Rothbard's Origins of the Federal Reserve.
Economics in Service of the State: The Empiricism of Richard T. Ely
Excerpt from Murray Rothbard, The Progressive Era, Patrick Newman, ed. (Auburn, Ala.: Mises Institute, 2017), from chap. 13 "World War I as Fulfillment: Power and the Intellectuals," pp. 428–36.
Psychology vs. Praxeology
Excerpt from chapter 17 of Guido Hülsmann's Mises: The Last Knight of Liberalism, pp. 765–67.
Equilibrium, Profit and Loss, and Entrepreneurship
Excerpt from chapter 17 of Guido Hülsmann's Mises: The Last Knight of Liberalism, pp. 770–73.
George Washington: An Image and Its Influence
This is chapter 2 from Reassessing the Presidency: The Rise of the Executive State and the Decline of Freedom, edited by John V. Denson.
John Prince Smith and the German Free-Trade Movement
Chapter 23 from Man, Economy, and Liberty: Essays in Honor of Murray N. Rothbard, eds. Walter Block and Llewellyn H. Rockwell Jr. (1988).
Why Understanding the Progressive Era Still Matters
Judge Napolitano's preface speaks to why the Progressive Era is so key to our understanding of modern America.
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.
Marx’s Theory of Stages: The Withering Away of the State Under Socialism
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.
