Short Changing 100 Percent Reserves

Volume 13, Number 2; Summer 2010

 

Selgin (2009) offers a challenge to 100 percent reserve banking by noting that small change would be unprofitable with 100 percent reserve money. This minor challenge fails firstly because 100 percent reserve banking does not require 100 percent  reserve money, only market determined money. Small change is shown here to not be a problem in the free market. Evidence from Richard Cantillon (1730) suggests that in the absence of government coercion, small change was not a problem.

Symposium Introduction

Volume 13, Number 3 (Fall 2010)

 

A symposium was held in San Antonio, Texas at the Southern Economic Association convention in November of 2009. This issue consists largely of papers based on the lectures given at the symposium. During the symposium, the subject was the current economic crisis.