An Essay on Economic Theory

3.7. Further Explanations and Enquiries as to the Utility of a National Bank

An Essay on Economic Theory by Richard Cantillon
Richard Cantillon

National Banks are of little utility and can be the source of economic chaos. The increase in the supply of money that they provide is relatively small and offers the same disadvantages as increases in real money. They are therefore unnecessary and potentially very harmful, as in the cases of the Bank of Venice and the Bank of London. The roles of legal tender laws, fractional reserve banking, and regional trade fairs are described.

From Part 3: International Trade and Business Cycles. Narrated by Millian Quinteros.