I know that deflation is good and all, but wouldn’t it cause more bankruns if there is a legal safeguard for fractional reserve banking?
isn’t it a choice between more bankruns/less inflation and less bankruns/more inflation?
There is no good that can come from any central planning agency, that includes a central bank. As for bank runs, in a truely free market for banking, which does not exist now, banks will have to keep reserves, maybe 100%, that will prevent runs on the bank. Only the market mechanism can determine the optimal reserves of a banking institution.