Musings on Fractional-Reserve Banking in a Bitcoin Age; Physicalist Shock Absorber Metaphors

I’ve been fascinated with the inter-Austrian debate on fractional-reserve banking for years.1 My view has long been that fractional reserve freebanking (FRB) is not inherently fraudulent and should not be illegal; but that economically it makes no sense. I think Huerta de Soto’s Roman legal analysis of irregular deposit warehouse banking is correct,2 and that […]