Are there any works by these economists that explain why fractional-reserve free banking wouldn’t cause business cycles? I recall Hayek accepting that it would cause business cycles, but that this was a price worth paying for the economic benefits; is this the general view?

Fully agreed. (we’ve already covered this) You have this bad habit of just making things up. Gold is great, it can fill teeth, it can…etc. and there are plenty of conservatives who share your dream of extremely poor banking.

Fully agreed. (we’ve already covered this) Yes, and we’ve already obliterated your ridiculous arguments. First of all: “The issuer creates the present good that it surrenders in the exchange–the fiduciary media–practically out of nothing” - Theory of Money and Credit, Chapter 18. Either way, t…

I challenge you to refute Kinsella on the non fraudulent nature of fractional reserves.

I don’t care about the so-called fraudulent nature of fractional reserves, I care about the business cycles they cause.

That an obliteration! quoting Mises saying nothing to actually refute. Amazing. The thing is history doesn’t exactly exonerate all of what you just said. And? That justifies you making things up how exactly? Very bad habit.

Someone mentioned Walter Block earlier in an anecdote. To Walter’s credit he is the most consistent 100% advocate and he recognizes the time deposit problem. He concludes that they too should be outlawed along with a bunch of other financial instruments. At least this is my understanding of his pos…

That an obliteration! quoting Mises saying nothing to actually refute. Amazing. You’re the one who was telling everyone that they should read TMC. The thing is history doesn’t exactly exonerate all of what you just said. Sure it does. No one will accept your notes, hence, your objection to …

I still don’t understand what Hayek and Mises mean when they say that newly created money can be beneficial if it’s demanded for money and not for capital? It would still cause relative price distortions, higher profits for lower order phases, and thus a contraction in the structure of production.

Austrian fractional-reserve free bankers...

Economics Economics Questions

Jakem September 1, 2009, 5:56pm 307

Then I invite you to comment on the new thread here: Demand vs Time Deposits

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Austrian fractional-reserve free bankers...

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