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 Denationalisation of Money, 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?

31 de julio de 2012   | Vistas: 38 |  

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.

George Selgin is professor of economics at the Terry College of Business, University of Georgia;a senior fellow at the Cato…


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