Austrian Business Cycle Theory, banking theory, central banks, fractional reserve banking, money supply

Several times on these pages (e.g., here and here), and elsewhere (e.g., here and here) I've tried to refute the claim, championed by certain Austrian-school economists and their many fans, that fractional-reserve banking is inherently fraudulent, because whenever the sum of readily-redeemable bank deposit balances and (when…

FSOC, Treasury, SIFI, too big to fail, bailouts

On Friday, the Treasury Department released a report on Financial Stability Oversight Council (FSOC) designations. This report could have addressed the problem underlying FSOC’s designation authority: the fact that it makes explicit which financial institutions are “too big to fail,” paving the way for more bailouts of…