• [ network ]
  • goatmatrix.net
  • gvid.tv
  • img.gvid.tv
  • games.gvid.tv
  • apps.gvid.tv
HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

Does Fractional Reserve Banking Endanger the Economy? A Debate

Views:820
@ReasonVids

Two free market economists debate a topic that has long divided libertarians: The standard banking practice of keeping only a portion of depositors' money on hand and loaning out the rest.


Subscribe to our YouTube channel: http://youtube.com/reasontv

Like us on Facebook: https://www.facebook.com/Reason.Magazine/
Follow us on Twitter: https://twitter.com/reason
Subscribe to our podcast at iTunes: https://goo.gl/az3a7a

Reason is the planet's leading source of news, politics, and culture from a libertarian perspective. Go to reason.com for a point of view you won't get from legacy media and old left-right opinion magazines.


On April 16, 2018, two free market economists debated a topic that has long divided libertarians. Fractional reserve banking refers to banks' standard practice of keeping only a portion of their depositors' money on hand and loaning out the rest.

In The Mystery of Banking (1983), the anarcho-capitalist economist Murray Rothbard called fractional reserve banking "a shell game, a Ponzi scheme, a fraud in which fake warehouse receipts are issued and circulate as equivalent to the cash supposedly represented by the receipts." Other libertarian economists, such as Larry White and Steve Horwitz, have argued that the practice is perfectly defensible.

At The Soho Forum, a debate series in New York City that is sponsored by the Reason Foundation, Robert Murphy debated George Selgin over the following resolution: "Fractional Reserve banking poses a threat to the stability of market economies."

Murphy, a research assistant professor with the Free Market Institute at Texas Tech University, argued for the affirmative. He has a Ph.D. in economics from NYU has addiliations with the Institute for Energy Research, the Mises Institute, the Fraser Institute, and the Independent Institute. He has authored hundreds of articles and several books explaining economics to the layperson, including Choice: Cooperation, Enterprise, and Human Action.

Selgin, who opposed the resolution, is a senior fellow and director of the Center for Monetary and Financial Alternatives at the Cato Institute and professor emeritus of economics at the University of Georgia. His research covers a broad range of topics within the field of monetary economics, including monetary history, macroeconomic theory, and the history of monetary thought. He is the author of The Theory of Free Banking, Bank Deregulation and Monetary Order, Less Than Zero: The Case for a Falling Price Level in a Growing Economy, and most recently Good Money: Birmingham Button Makers, the Royal Mint, and the Beginnings of Modern Coinage.

The Soho Forum runs Oxford-style debates, in which the audience votes on the resolution at the beginning and end of the event. The side that gains more ground is victorious. ​In this case, Selgin won by convincing 14 percent of the audience to switch over to his side.

Produced by Todd Krainin.

libertarian
,
reason magazine
,
reason.com
,
reason.tv
,
reasontv
    Thumbnail for California Says Coffee Needs Cancer Warning Labels6:35
    California Says Coffee Needs Cancer Warning Labels
    ReasonVids
    1009 views
    Thumbnail for Protestors Attempt to Shutdown NBA Game Attended by Prince William and Duchess Kate0:50
    Protestors Attempt to Shutdown NBA Game Attended by Prince William and Duchess Kate
    ReasonVids
    1000 views
    Thumbnail for When Cops Play Doctor: How the drug war punishes pain patients5:35
    When Cops Play Doctor: How the drug war punishes pain patients
    ReasonVids
    1014 views
    Thumbnail for Why A Dictatorship Could Crumble: "Young Cubans... have not been brainwashed."10:20
    Why A Dictatorship Could Crumble: "Young Cubans... have not been brainwashed."
    ReasonVids
    997 views
    Thumbnail for Hong Kong Protesters Stand Up to China's 'Draconian' Takeover22:08
    Hong Kong Protesters Stand Up to China's 'Draconian' Takeover
    ReasonVids
    964 views
    Thumbnail for Joe Biden Wants To Reform the Criminal Justice System He Helped Create7:50
    Joe Biden Wants To Reform the Criminal Justice System He Helped Create
    ReasonVids
    886 views
    Thumbnail for Hong Kong Protesters Want Democracy, Accountability, Autonomy, and U.S. Support3:45
    Hong Kong Protesters Want Democracy, Accountability, Autonomy, and U.S. Support
    ReasonVids
    830 views
    Thumbnail for Why You Can't Solve a Public Health Problem With Economic Stimulus16:01
    Why You Can't Solve a Public Health Problem With Economic Stimulus
    ReasonVids
    1027 views
    Thumbnail for Look at this beautiful moose 1:00
    Look at this beautiful moose
    bestofupgoat
    224 views
    Thumbnail for Seth “Freakin” Rollins is doing his best to change Cody Rhodes’ mind… 👀 🤔 #WWERaw | WWE0:21
    Seth “Freakin” Rollins is doing his best to change Cody Rhodes’ mind… 👀 🤔 #WWERaw | WWE
    invidious
    338 views
    Thumbnail for Ending the Classroom Factory Model: How Technology Will Personalize Education4:55
    Ending the Classroom Factory Model: How Technology Will Personalize Education
    ReasonVids
    910 views
    Thumbnail for this is CRAZY... | GothamChess0:52
    this is CRAZY... | GothamChess
    invidious
    208 views
    Thumbnail for Bjorn Lomborg & The Copenhagen Consensus: What's the best way to live with global warming?4:29
    Bjorn Lomborg & The Copenhagen Consensus: What's the best way to live with global warming?
    ReasonVids
    768 views
    Thumbnail for Legalize Medically-Assisted Sex: Keep Government Out of Bedrooms and Wheelchairs5:39
    Legalize Medically-Assisted Sex: Keep Government Out of Bedrooms and Wheelchairs
    ReasonVids
    1027 views
    Thumbnail for A 100lbs Japanese lumberjack 1:09
    A 100lbs Japanese lumberjack
    bestofupgoat
    371 views
    Thumbnail for Debug Node.js apps with Chrome DevTools (and TypeScript) | TypeScript TV with Benny12:20
    Debug Node.js apps with Chrome DevTools (and TypeScript) | TypeScript TV with Benny
    invidious
    405 views
    Thumbnail for Drive Thru Will Hand A Maskless Woman A Mask But Won't Hand Her A Drink Without Mask0:37
    Drive Thru Will Hand A Maskless Woman A Mask But Won't Hand Her A Drink Without Mask
    bestofpoal
    1349 views
    Thumbnail for How the Feds' Subpoena of Reason and Gag Order Went Public10:04
    How the Feds' Subpoena of Reason and Gag Order Went Public
    ReasonVids
    961 views
    Thumbnail for How Eva Moskowitz Outmuscled the Teachers Union16:52
    How Eva Moskowitz Outmuscled the Teachers Union
    ReasonVids
    1053 views
    Thumbnail for Degenerate has the giggles about her degeneracy1:25
    Degenerate has the giggles about her degeneracy
    bestofupgoat
    519 views
    Thumbnail for Peter Gabriel - Sledgehammer (HD version) | Peter Gabriel5:45
    Peter Gabriel - Sledgehammer (HD version) | Peter Gabriel
    invidious
    193 views
    Thumbnail for Radley Balko Talks HuffPo, Nashville, OWS, & Cory Maye3:52
    Radley Balko Talks HuffPo, Nashville, OWS, & Cory Maye
    ReasonVids
    936 views
    Thumbnail for Catch Crappie Easy From The Bank! Simple Minnow & Bobber Setup Crappie Can't Resist | Richard Gene The Fishing Machine24:31
    Catch Crappie Easy From The Bank! Simple Minnow & Bobber Setup Crappie Can't Resist | Richard Gene The Fishing Machine
    invidious
    114 views
    Thumbnail for 'Medicare Is a Bank Without Security Guards:' Media Exec David Goldhill vs. Princeton's Paul Starr1:21:45
    'Medicare Is a Bank Without Security Guards:' Media Exec David Goldhill vs. Princeton's Paul Starr
    ReasonVids
    854 views
    Thumbnail for Sharad Pawar Sabha LIVE | Rohit R R Patil | Tasgaon Kavathe Mahankal Vidhan Sabha Election | Maharashtra Times । महाराष्ट्र टाइम्स3:32:41
    Sharad Pawar Sabha LIVE | Rohit R R Patil | Tasgaon Kavathe Mahankal Vidhan Sabha Election | Maharashtra Times । महाराष्ट्र टाइम्स
    invidious
    194 views

points

Permalink
Reply
libertarian
,
reason magazine
,
reason.com
,
reason.tv
,
reasontv
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle