An Appeal for Better Scholarly Discourse: How Bagus and Howden Have it Wrong on Free Banking

13 Pages Posted: 1 May 2011

See all articles by Anthony J. Evans

Anthony J. Evans

ESCP Business School

Steven Horwitz

Ball State University - Department of Economics

Date Written: April 30, 2011

Abstract

In their recent article in the Quarterly Journal of Austrian Economics, Bagus and Howden (2010) present “quibbles” with fractional reserve free banking. Or specifically, what they call “unaddressed issues” in this system, with a particular emphasis on Selgin (1988). We deem their arguments to be more substantial than “quibbles” and are part of a longstanding debate about fundamental aspects of monetary theory. We respond to their objections and attempt to specify how debate between the two sides might proceed more productively.

Keywords: business cycles, central banking, free banking, monetary equilibrium

JEL Classification: B53, E31, E32, E41, E42, E51, G21

Suggested Citation

Evans, Anthony J. and Horwitz, Steven, An Appeal for Better Scholarly Discourse: How Bagus and Howden Have it Wrong on Free Banking (April 30, 2011). Available at SSRN: https://ssrn.com/abstract=1826622 or http://dx.doi.org/10.2139/ssrn.1826622

Anthony J. Evans (Contact Author)

ESCP Business School ( email )

537 FINCHLEY ROAD
LONDON, NW37BG
United Kingdom

Steven Horwitz

Ball State University - Department of Economics ( email )

Department of Economics
Ball State University
Muncie, IN 47306
United States
765 285 5384 (Phone)

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