Quarterly Journal of Austrian Economics
Author:
Laura Davidson
Online Publish Date:
Volume 15, No. 2 (Summer 2012) The theory of monetary disequilibrium, as espoused by Selgin (1988), White (1989), Horwitz (2000), and others, has been used to justify the issuance of fiduciary media under a system of fractional reserve “free” banking. The present paper examines this monetary disequilibrium theory and concludes that it contains