Lessons from the American Experience with Free Banking
There has been considerable interest in recent years in historical experiments with "free banking." This paper examines once again the American experiments in the decades before the Civil War, and the recent literature on them. The lessons of this experience for four issues are considered: (1) the appropriate mechanism for controlling the monetary base, (2) the need for a lender of last resort, (3) the costs and benefits of a bank issued currency, and (4) the potential under a regime of free banking for wildcat banking.
|Date of creation:||Dec 1989|
|Date of revision:|
|Publication status:||published as In Unregulated Banking: Chaos or Order? eds. Forrest Caprie and Geoffrey Wood. London: MacMillan Academic and Professional, Ltd., 1991.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- King, Robert G., 1983. "On the economics of private money," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 127-158.
- Economopoulos, Andrew J, 1988. "Illinois Free Banking Experience," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(2), pages 249-64, May.
- Rockoff, Hugh, 1974. "The Free Banking Era: A Reexamination," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 6(2), pages 141-67, May.
- Cowen, Tyler & Kroszner, Randall, 1987. "The Development of the New Monetary Economics," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 567-90, June.
- Rolnick, Arthur J & Weber, Warren E, 1983. "New Evidence on the Free Banking Era," American Economic Review, American Economic Association, vol. 73(5), pages 1080-91, December.
- Kahn, James A, 1985. "Another Look at Free Banking in the United States [New Evidence on the Free Banking Era]," American Economic Review, American Economic Association, vol. 75(4), pages 881-85, September.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberhi:0009. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.