David Hume on Banking and Hoarding
26 Pages Posted: 18 Sep 2013
Date Written: September 1, 2013
David Hume opposes banks and favors hoarding. The only bank he reluctantly approves of is a public 100% reserve bank. Other banks increase the money supply and prices, hindering exports and economic growth. For Hume, a 100% reserve public bank would lead to “the destruction of paper-credit,” fostering economic growth instead by preventing inflation. Additionally, a 100% reserve bank hoards a large quantity of gold and silver which is available in case of national emergency.
Keywords: David Hume, 100% reserve, banking
Suggested Citation: Suggested Citation