Money and Banking

Recorded at Mises University 2005.

Recorded at Mises University 2005.

Recorded at Mises University 2005.

Recorded at Mises University 2005.

Can there be such thing as too much saving? Frank Shostak says this is like asking if can we have too much real wealth. 

The Austrians view is that monopoly came about as privilege, usually granted by royalty, given to a particular person or industry. This process is arbitrary and capricious. Free entry is required in capitalism. There cannot be restrictions on entry, as with doctors.

Price, quantity, profit, and deadweight loss are four criticisms of monopolies.

From the Cato Journal, Vol. 19, No. 2, 1999.

Published in the Cato Journal Vol. 20, No. 3, Winter 2001.

Banks under a free-banking system, like banks with fractional reserves under any other system, are susceptible to runs. Free-banking theorists maintain that the option clause would be one effective means of dealing with runs on banks.

During the past decade a significant change has occurred in the kinds of questions explored by monetary economists. Heretofore, one of the central issues concerned the “rules versus discretion” debate of a central bank empowered monopolistically to supply base money.