Abstract
In the Austrian school’s tradition, the commercial banks should be free to issue currency, exactly as the government does since the objective is to limit the monopoly of the government or an European central bank on money. Currency competition is the way to eliminate most of these currencies in favor of a few, or even a single one, in the long, provided this currency is stable enough to accommodate the plans of private agents.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Despite this fact most loans to the consumer sector were and still are backed up by land or housing property, so risk was negligible.
References
Polito V, Wickens M (2007) Measuring the fiscal stance, Discussion Papers 07/14, Department of Economics, University of York
Mises L (2006) The causes of economic crisis, Mises Institute
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Tsionas, E.G. (2014). The Case of Free Banking. In: The Euro and International Financial Stability. Financial and Monetary Policy Studies, vol 37. Springer, Cham. https://doi.org/10.1007/978-3-319-01171-4_14
Download citation
DOI: https://doi.org/10.1007/978-3-319-01171-4_14
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-01170-7
Online ISBN: 978-3-319-01171-4
eBook Packages: Business and EconomicsEconomics and Finance (R0)