Laissez Faire Banking

Laissez Faire Banking

by Kevin Dowd
     
 

ISBN-10: 0415085845

ISBN-13: 9780415085847

Pub. Date: 03/26/1993

Publisher: Taylor & Francis

The idea of free (or laissez-faire) banking has enjoyed a remarkable renaissance in recent years. It is a radical idea that challenges much of what many monetary and banking scholars still take for granted - that banking is inherently unstable, that the banking system needs a lender of last resort or deposit insurance to defend it in a crisis, and that the government…  See more details below

Overview

The idea of free (or laissez-faire) banking has enjoyed a remarkable renaissance in recent years. It is a radical idea that challenges much of what many monetary and banking scholars still take for granted - that banking is inherently unstable, that the banking system needs a lender of last resort or deposit insurance to defend it in a crisis, and that the government has to protect the value of the currency. Against this free banking sets an argument which is in essence very simple: if markets are generally better at allocating resources than governments, then what is different about money and the industry that provides it and why should they be treated differently? Laissez-faire Banking is divided into three interrelated sections, dealing with the theory of free banking, historical experiences of it and present-day monetary and banking reforms based on free banking principles. Questions relating to the stability or otherwise of free banking regimes are always paramount, and the practical section discusses various forms of automatic stabilizing mechanisms under free banking. The historical chapters also provide compelling evidence of the ultimate stability of free banking systems as well as discussing how central banking evolved in Britain and the United States and the effects it has had. Finally, the book shows how free banking theory can shed light on important contemporary issues, including European monetary reform, the consequences of a European central bank and the US banking crisis.

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Product Details

ISBN-13:
9780415085847
Publisher:
Taylor & Francis
Publication date:
03/26/1993
Series:
Routledge Foundations of the Market Economy Series
Pages:
400
Product dimensions:
5.50(w) x 8.50(h) x 1.00(d)
Age Range:
18 Years

Table of Contents

List of figures and tables
Acknowledgements
1Introduction1
Pt. IFree banking theory23
2Automatic stabilizing mechanisms under free banking25
3Option clauses and the stability of a laissez-faire monetary system41
4Monetary freedom and monetary stability58
5Is banking a natural monopoly?76
6Models of banking instability87
Pt. IIHistorical experience115
7Free banking in Australia117
8US banking in the 'free banking' period149
9Money and banking: the American experience180
10Did central banks evolve naturally?207
11The evolution of central banking in England, 1821-90221
12The evolution of central banking in England: a reply to my critics248
Pt. IIIMonetary and banking reform253
13Stopping inflation255
14Does Europe need a Federal Reserve System?265
15Evaluating the hard ecu281
16The US banking crisis: the way out292
Notes319
Bibliography357
Index372

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