How should central bankers provide aid to struggling financial institutions during a panic? Ask 19th-century economic theorist Walter Bagehot. Or, if you can't do that, ask his biographer: acclaimed author, publisher, and monetary scholar James Grant. Join Grant and the Cato Institute's George Selgin on Wednesday, September…

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…