AgAinst MonetAry DisequilibriuM theory AnD FrActionAl reserve Free bAnking
نویسنده
چکیده
The theory of monetary disequilibrium, as espoused by Selgin (1988), White (1989), Horwitz (2000), and others, has been used to justify the issuance of fiduciary media under a system of fractional reserve “free” banking. The present paper examines this monetary disequilibrium theory and concludes that it contains numerous errors and logical fallacies. The foundational economic argument in favor of fractional reserve banking is invalid.
منابع مشابه
Comparative analysis of the effects of monetary and government financial expenditures shocks in the context of fractional and full reserve banking in Iran: DSGE approach
The present study aims to investigate the effects of monetary and financial shocks on macroeconomic variables in fractional and full reserve banking conditions. To this end, two stochastic dynamic general equilibrium models have been designed in terms of the realities of Iran's economy and then the effects of shocks have been studied. After determining the input values of the model and estima...
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