Transcript
  • 00:00    |    
    Initial credits
  • 00:06    |    
    Introduction by Lucas Rentschler
  • 00:24    |    
    What is free banking?
  • 02:32    |    
    What examples of free banking systems have we seen?
    • Scottish banking system
    • Canadian banking system
  • 04:14    |    
    What do you think the role of commodities would be in a free banking system?
  • 05:38    |    
    How does currency competition take place in a free banking system?
  • Banking regulatory mechanism
  • 08:16    |    
    What impediments would transaction costs face in a free banking system?
    • Scottish system transaction costs
    • American system transaction costs
    • Quotes n , Friedrich A. Hayek
  • 14:09    |    
    If adopting a free banking system in a developing country such as Guatemala, which would be the implications?
  • Implications of governmental currency monopoly
  • 18:25    |    
    How would a transition take place from a central banking system to a free banking system?
  • 21:23    |    
    In a free banking system still based in fiat currency, how would the role of the central bank differ?
  • Instability and crisis management
  • 24:54    |    
    How susceptible would a free banking system be to bank runs?
  • Historical evidence of banking regulation results
  • 29:22    |    
    Final words
  • 29:28    |    
    Final credits


What is Free Banking?

New Media  | 31 de julio de 2012  | Vistas: 65

George Selgin defines free banking as a monetary arrangement where currency is competitively supplied by private commercial banks and, consequently, not monopolized by a central bank.

He sets as examples the Scottish and Canadian’s free banking systems, which flourished in the eighteenth and nineteenth centuries; yet, he clarifies that a completely free banking structure has not existed, since there has always been some form of government involvement. He discusses the possibility and feasibility of implementing such system in the present time, stating, as well, the negative macroeconomic implications that a central banking system has, especially for a developing country such as Guatemala, and suggests that more liberty and less government intervention could be a source of wealth and growth.

Selgin concludes by explaining how transaction costs are managed within this system, in addition to the effectiveness it entails when dealing with crises, such as bank runs or instability, in the current banking organization.




Conferencista

George Selgin is professor of economics at the Terry College of…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

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