The Austrian Economic Debate: Free Banking vs. 100% Reserve Banking

[cobracarg]

keep in mind that Mises was actually a free banking economist... While Hayek resparked the free banking movement, it was Mises that had that same idea of the banking system. A couple good articles on this is "We are not (Devo)lutionists, We are Misesians," and "Mises on Fractional Reserves and Free Banking"

[TenTonHorse]

@cobracarg Thanks for the articles, very interesting read.

[tothemax01]

It is obvious that full reserve banking is completely inconsistent with the Austrian school, and that men like Rothbard Hoppe Block and Hulsmann (who claim to be Austrians) are against free banking is a farce. A bank deposit has always been a loan to a bank, regardless of whether the word 'deposit' sounds like a bailment. The bank becomes the owner of the money, and becomes indebted to the depositor. There is no fraud unless the bank says 'your deposit is guaranteed to be callable at all times'.

[777troll]

read "against fiduciary media" by hoppe block and hülsmann. this will give you an overview over the debate and the arguments. free pdf is on the internet.