GMU's Lawrence H. White on Free Banking and the Gold Standard (11/18/10)

Please rate this video and subscribe to this channel! Would commodity money with free banking have allowed for a financial crisis like the recent one? Lawrence H. White, an adjunct scholar at the Cato Institute, says no. He spoke at the Cato Institute's 28th Annual Monetary Conference held November 18, 2010.

[fritoman]

Does anyone know the name of Hayek's book which talks the most about free banking.

[cobracarg]

@fritoman182 the short book that sparked the whole Free Banking Thinking is "the Denationalisation of Money" by Hayek

[freetrailerpoor]

@CoombesKidd I got to thinking, is not if you have an account at vanguard mutual funds or etrade infact full reserve banking? I don't like the idea of someone putting their money in a free bank, because most likely a small town might only have 2 small banks, ii is not really free banking with such limited competition.

[SadanasExodia]

Does Cato back the Austrian or Chicago school for economic policy.

[MichalGamrot]

@pirucreek 100% reserve is a the most stupid idea in economics. Read "In defence of fiduciary media" by Selgin and Lawrence White.

[ujisx]

@zombiefitnezz It is certainly true that things will not get cheaper to buy without deflation. I mean you can't be for more free stuff while advocating inflation.

Where have we had free market money in your history book?

The Characteristic of Free Market Money:

1) Private property 2) The right of contract 3) The enforcement of contracts by the state 4) No state licensing of banks 5) Open entry in coin production 6) No state mint 7) No state currency or coins 8) Therefore, no legal tender laws

[freetrailerpoor]

@CoombesKidd I have been watching every video I can get my hands on regarding free banking, full reserve banking, and deflation. I don't think free banking is best, I think full reserve banking is best with a gold standard or better a fixed deflationary currency.

[MichalGamrot]

@CoombesKidd Lol, I bet you haven't read any free (fractional reserve) literature. Start by reading "In defence of fiduciary media" by Selgin and Lawrence White.

[freetrailerpoor]

During the free banking era, the banks were short-lived compared to today's commercial banks, with an average lifespan of five years. About half of the banks failed, and about a third of which went out of business because they could not redeem their notes. Free bankings does not work what about panic of 1857?

[freetrailerpoor]

@MichalGamrot You are the problem with the world. Have you ever heard of MF Global. From what I am gathering they took clients cash accounts and invested them in all sorts of things. if they were not allowed to do that and forced to have full reserve and store that money at the FED there would be no problems.