David Hume on Banking and Hoarding

26 Pages Posted: 18 Sep 2013

Date Written: September 1, 2013

Abstract

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

Paganelli, Maria Pia, David Hume on Banking and Hoarding (September 1, 2013). Southern Economic Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2327348

Maria Pia Paganelli (Contact Author)

Trinity University ( email )

Dept. of Economics
One Trinity Place
San Antonio, TX 78212
United States

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