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

Alex Merced reflects on the biggest divide in the Austrian Economics community, the debate on 100% reserve banking and free banking. Alex Merced discusses his concern for public insurance schemes and how technology with make this banking debate less relevant since the need for central pockets of capital formation become less important.

Clarification: I probably shouldn't of refered to the Denationalization of money by FA Hayek as a book on free banking since it's more about what the money should be then the banking side of things. Although still a must read.

For the record I recorded this after a 13 hours workday and was exausted, so I do apologize for my lack of focus on the subject in this video.

Category:

News & Politics

Tags:

• Free Banking
• 100 Reserve Banking
• Murray Rothbard
• Hayek
• Austrian Economics

[TenTonHorse]

@cobracarg Thanks for the articles, very interesting read.

[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"

[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.