Money, bank credit and economic cycles
19.99 €
15.99 €
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The book is devoted to a comprehensive examination of the central institution of the modern economic order - banking on the basis of partial reserve banking with a central bank and the role of this institution in periodically recurring economic cycles. The author analyzes this problem from legal, historical, and economic perspectives. Chapters 1-3 deal with the legal and historical aspects of partial-reserve banking. Chapters 4-7 explain in detail how the violation of universal principles of law, expressed in partial-reserve banking, inevitably leads to credit expansion and the boom-bust cycle. Here Huerta de Soto outlines and develops the approach of the Austrian school of economics (L. Mises, F. Hayek, M. Rothbard). Chapter 8 is devoted to dissecting the theories justifying the need for a central bank and the permissibility of partial-reserve banking. In the concluding chapter 9 of the book, the author discusses the problem of reforming the modern monetary system based on a combination of unissued money and partial-reserve banking under the control of a central bank, speaking with his own plan.
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