Fractional Reserve Banking in Scotland | Bob Murphy

Not so great after all.

[kingj]

Bob is right here

Selgin’s definition of “stable” is very skewed. Recurrent business cycles and minimal bank runs is not historical evidence of good economics nor monetary stability. The problem with Selgin and other free banking proponents is that they are freedom chanting ideologues unwilling to change their positions and concede to the clear historical indication that fractional reserve banking is a blight to economic stability. The phenomenon of why fractional reserve banking is unstable has been theoretically demonstrated by Ludwig Von Mises. (see Theory of Money and Credit)

Good economics is more important than ideological blindness