Friday, February 2, 2018

Rant worth repeating

We Are All Free Banking Theorists Now

George Selgin indicating that the assumption of a central bank monopoly is wrong.  

Banking, in term of estimating a typical sequence. is natural to us, and we bank when we need to. We will bank without the fiat.  We can carry a black market labor supply generator in our head if we are hiring.  We have tax lawyers on duty maintaining out of band banking. We have gold. We have coupons, food stamps, housing voucher, seasonal sales, all of which require some sort of non fiat banking. Then we have collectors and international travel and central bank hedging, as well as a host of inside inventory adjustments. It is everywhere.

All of this is viewed by one monetary system as losing market share to another.    So, econ 101, competitive markets did not go away in chapter two, the part about banking.  Chapter two is all about concurrent and differing monetary systems at work, always,  in maintaining inventory stability.

No comments: