Unpacking Mises: Fractional Reserve Banking and the Currency School

Mises Fellow Kristoffer Hansen joins Bob to discuss Mises’ perspective on fractional reserve banking and free banking. Earlier this month, Larry White referenced Hansen’s work on fractional reserve banking, asserting that Hansen indicated Mises acknowledged the benefits of FRB. Kristoffer clarifies his paper and examines what Mises wrote in Human Action on the topic. Additionally, Bob and Kristoffer delve into the influence of the Currency School on banking and economic instability, as well as how commodity-backed money might impact the business cycle. Kristoffer’s Article in the QJAE, “Sound Money without Free Banking”: https://Mises.org/HAP472a Kristoffer and Jonathan Newman’s Article in the QJAE Clarifying Rothbard’s Definition of Inflation: https://Mises.org/HAP472b Human Action Podcast Episode 470 on the Debate Over Fractional Reserve Banking: https://Mises.org/HAP472c