Why Fractional Reserve Banking Is behind Bank Failures

Tags Central BanksMonetary PolicyMoney and Banks

04/01/2023Jonathan Newman

Narrator:

Suppose an addict had the ability to magically create, ex nihilo, his own stimulating drug, as fractional reserve banks can do with money and credit. Would you expect moderation?

Original Article: "Why Fractional Reserve Banking Is behind Bank Failures"

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Author:

Contact Jonathan Newman

Dr. Jonathan Newman is an Associate Professor of Economics and Finance at Bryan College and a Fellow at the Mises Institute. He earned his PhD at Auburn University while a Research Fellow at the Mises Institute. He was the recipient of the 2021 Gary G. Schlarbaum Award to a Promising Young Scholar for Excellence in Research and Teaching. His research focuses on Austrian economics, inflation and business cycles, and the history of economic thought. He has taught courses on Macroeconomics and Quantitative Economics: Uses and Limitations in the Mises Graduate School.