The Case Against Fiduciary Media: Ethics is the Key

Journal of Business Ethics volume 98, pages 505–511 (2011)Cite this article

Abstract

Salerno (http://mises.org/daily/4389, 2010a) asserts that in the debate between those who favor and oppose fractional reserve banking, the important issue is not whether or not this institution is inherently fraudulent, but, rather, does it or does it not cause the business cycle. We join this author in thinking both important; however, we reverse this order.

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Affiliations

  1. Loyola University, New Orleans, LA, U.S.A.

    Walter Block

  2. Seattle, WA, U.S.A.

    Laura Davidson

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  1. Walter Block
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  2. Laura Davidson
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Correspondence to Walter Block.

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Block, W., Davidson, L. The Case Against Fiduciary Media: Ethics is the Key. J Bus Ethics 98, 505–511 (2011). https://doi.org/10.1007/s10551-010-0590-2

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Key words

  • fractional reserve banking
  • fraud
  • business cycle
  • contract
  • ethics