Banking and Liberty


This seminar considered and debated the issue of fractional reserve banking, not only from a purely Austrian perspective, but also with the intention to analyze the fundamentals of current financial arrangements in order to better understand the reasons for their instability and the risks it poses for a society of free and responsible individuals.


From Liberty Fund

The Theory of Money and Credit

by By Ludwig von Mises
Introduction by Lionel Robbins
Foreword by Murray N. Rothbard

The Theory of Money and Credit integrated monetary theory into the main body of economic analysis for the first time, providing fresh, new insights into the nature of money and its role in the economy and bringing Mises into the front rank of European economists.

The Theory of Money and…

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Additional Readings

Buchanan, James M. “The Constitutionalization of Money.” The Cato Journal 30, no. 2 (Spring/Summer 2010): 251-258.

Fisher, Irving. 100% Money: Designed to keep checking banks 100% liquid; to prevent inflation and deflation; largely to cure or prevent depression; and to wipe out much of the National Debt. New York: Adelphi Company, 2011.

Friedman, Milton. A Program for Monetary Stability. New York: Fordham University Press, 1992.

Hayek, Friedrich. Denationalisation of Money (Third Edition). London: Institute of Economic Affairs, 1990.

Hoppe, Hans-Hermann. “How is Fiat Money Possible? or, The Devolution of Money and Credit.” The Review of Austrian Economics 7, no. 2 (1994): 49-74.

Hoppe, Hans-Hermann with Jorge Guido Hulsmann and Walter Block. “Against Fiduciary Media.” Quarterly Journal of Austrian Economics 1, no. 1 (1998): 19-50.

Mises, Ludwig von. On the Manipulation of Money and Credit: Three Treatises on Trade-Cycle Theory. Indianapolis: Liberty Fund, Inc., 2011.

Mises, Ludwig von. Human Action: A Treatise on Economics, Volume 2. Edited by Bettina Bien Greaves. Indianapolis: Liberty Fund, Inc., 2007.

Rothbard, Murray N. The Case For a 100 Percent Gold Dollar. Auburn: Mises Institute, 1991.

Rothbard, Murray N. The Mystery of Banking. New York: Important Books, 2012.

Selgin, George. “Those Dishonest Goldsmiths.” Financial History Review 19, no. 3 (December 2012): 1-27.

White, Lawrence H. “Accounting for Fractional-Reserve Banknotes and Deposits––or, What’s Twenty Quid to the Bloody Midland Bank?” The Independent Review VII, no. 3 (Winter 2003): 423-441.