Roberts and Selgin on Free Banking

This week’s EconTalk with George Selgin is one of the most thought-provoking talks Russell Roberts has ever hosted. They use free banking as an analogy to free trade and discuss differences between the idea of free banking and the current model with central bank and state monopoly to issue money. Selgin eloquently explains potential differences in safety measures for depositors, levels of currency reserves and capital structure of financial institutions in both schemes. Add some public choice perspective mixed with witty humor and what you get is this rare gem of easy to understand and fascinating talk about economics and monetary policy.

Strongly recommended.

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