Reviewing free banking in different US States and lessons for cryptocurrencies

Mostly Economics

Nice article by Helen Fessenden of Richmond Fed.

The idea of an “unregulated” currency, however, isn’t new. Before the Civil War, the United States ran a vast natural experiment by leaving “free banking” to the states, even while other major economies were adopting central banking. From the demise of the Second Bank of the United StatesOffsite in 1836 until the passage of National Banking ActsOffsite of 1863 and 1864, the United States lacked a federal authority to issue and redeem banknotes, act as a fiscal agent for the federal government, or keep banknote issuance in check. Instead, banking was run by the states, and “free banks” could issue their own banknotes. But just how much did this amount to the kind of free-entry, highly decentralized currency competition that some cryptocurrency backers advocate today?

Helen says free banking experiences differed across States. It was successful in New York and New England. This was largely…

View original post 353 more words

Advertisements
This entry was posted in applied price theory on by .

About Jim Rose

Utopia - you are standing in it promotes a classical liberal view of the world and champion the mass flourishing of humanity through capitalism and the rule of law. The origin of the blog is explained in the first blog post at https://utopiayouarestandinginit.wordpress.com/2014/03/12/why-call-my-blog-utopia-you-are-standing-in-it/

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.