Mises Daily
Author:
Philipp Bagus
Online Publish Date:
When it comes to deflation, even Austrian economists disagree. In contrast to those who favor a 100 percent–reserve system and the effect such a system would have on prices, Austrian defenders of a fractional-reserve, free-banking (FRFB) system still seem to harbor a fear of price deflation. Examples of this group include Steven Horwitz , George