Fractional-reserve banking, in which only a fraction of demand deposits are available on demand (the rest being lent out), has been a source of controversy even among self-identified Austrian economists. Jeff Herbener joins us to discuss the purely economic effects of fractional-reserve banking.
About the Guest
Jeffrey M. Herbener is chairman of the department of economics at Grove City College and associate editor of the Quarterly Journal of Austrian Economics. He has also produced economics courses for Liberty Classroom.
Learn the history and economics they didn’t teach you at Tom’s Liberty Classroom. Take $20 off a yearly subscription with coupon code SMASH, and $100 of a lifetime subscription with code MASTERY (codes must be entered in all caps). Click here to check it out.
Ep. 686 We Don’t Need the Fed, a Central Planning Agency (John Tamny)
Ep. 723 Austrian Criticisms of Mainstream Economics Are Sound: Reply to a Critic
Ep. 664 How the Fed Screwed Up Before and During the Great Depression
Ep. 529 Leftist Site Attacks Gold Standard; Here’s Our Smackdown (Joe Salerno and Jeff Herbener)
Ep. 527 Is Austrian Economics Unscientific Because It Doesn’t Conduct Experiments?
Ep. 513 Can We Decide on a Main Problem with Socialism? Also: Why the Austrians Are Right About Monopoly
Ep. 488 Welfare Economics: Rothbard Was Right
Ep. 456 Monopoly Is Everywhere, Say Mainstream Economists; Austrians Roll Eyes
Ep. 403 Austrian Microeconomics: Where the Critics Go Wrong
Ep. 269 End the Fed, Then What?
Ep. 257 Austrian Economics vs. a Mainstream Text
Ep. 172 The Fallacies of GDP
Ep. 130 The Fallacies of ‘Public Goods’
Listener Website Mentioned
Enjoy the Tom Woods Show? You’ll love my once-a-week podcast with Bob Murphy, Contra Krugman!
2) Free publicity for your blog. As a special thanks if you get your hosting through one of my affiliate links (this one for Bluehost, or this one for WP Engine), I’ll boost your blog. Click here for details.
3) Free History Course: The U.S. Presidents — Politically Incorrect Edition. Get access to this 22-lesson course: 22 videos, 22 mp3 files for listening on the go, and a bibliography of reliable books on the presidents. Click here!.
4) $160 in Free Bonuses. Free signed copy of my New York Times bestseller The Politically Incorrect Guide to American History, plus a free 10-lesson bonus course on the foundations of liberty, plus a free year’s subscription to LibertyClassroom.com, when you subscribe to the Ron Paul Curriculum site through RonPaulHomeschool.com.