New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts

12/17/2021 Quarterly Journal of Austrian Economics Anthony J. Evans

Downloads

New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts

This article provides a potential denouement of a rich debate about one of the most contentious ethical issues in economics: fractional reserve lending. It provides a considered response to Philipp Bagus, David Howden, and Amadeus Gabriel’s (2017) claim that hybrid contracts are examples of “hubris,” provides some new empirical evidence, and clarifies certain points of disagreement.

CITE THIS ARTICLE

Anthony Evans, "New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts," Quarterly Journal of Austrian Economics 24 (2021).

Image Source: Photo by Mikel Parera on Unsplash

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.

Subscribe to Quarterly Journal of Austrian Economics

Latest Articles

Equality Before the Law, Not Privilege by Group Membership

08/18/2026 Mises Wire Wanjiru Njoya

Ludwig von Mises favored liberalism, which was based upon the equality of each person before the law. Today, elites are seeking a regime in which the law is written and enforced to favor one group over another.

Keynes Before He Became a Keynesian

08/17/2026 Mises Wire George Ford Smith

The costs of war are vast and horrific. Most people know this, which raises the question of why the US government seemingly can’t live without it. Is it simply a matter of applied Keynesianism, that...

Why the Fed Should Not Accommodate Increases in the Demand for Money

08/17/2026 Mises Wire Frank Shostak

Most economists believe that a growing economy needs a growing supply of money. While sounding like a common-sense idea, it turns out to be dreadfully wrong.

The Innovation Mirage: Why DeepSeek and Kimi 3 Do Not Settle the Question of Chinese Technological Supremacy

08/15/2026 Mises Wire Lipton Matthews

There is no doubt that Chinese firms have made many advances in AI technology, but how far they can go in the future still is an open question.

The Pretexts and Motives Behind Government Regulation

08/15/2026 Mises Wire Hal Snarr

Murray Rothbard wrote many years ago that government regulation, ostensibly created to protect consumers, actually protects incumbent producers from competition. Decades later, nothing has changed.

Meet the Writer

Anthony J. Evans

Anthony J. Evans is associate professor of economics, ESCP Europe Business School.

New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts

12/17/2021 Quarterly Journal of Austrian Economics Anthony J. Evans

Are a deposit and a loan mutually exclusive? Or is a deposit contract legitimate even if it permits banks to engage in fractional reserve lending? Evans discusses these hybrid contracts.

Not Enough Bricks: Monetary Misperceptions and the UK Housing Boom

08/21/2014 Quarterly Journal of Austrian Economics Anthony J. Evans

This article analyzes the housing boom witnessed in the UK economy from 1994–2007 in light of the Austrian theory of the business cycle (ABC). Ludwig von Mises’s parable of the “bricks” is utilized to provide empirical

What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member

Get Your August Rothbard Giveaway Book! The Case for a 100 Percent Gold Dollar

New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts

CITE THIS ARTICLE