Abstract
In the Austrian school’s tradition, the commercial banks should be free to issue currency, exactly as the government does since the objective is to limit the monopoly of the government or an European central bank on money. Currency competition is the way to eliminate most of these currencies in favor of a few, or even a single one, in the long, provided this currency is stable enough to accommodate the plans of private agents.
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Notes
- 1.
Despite this fact most loans to the consumer sector were and still are backed up by land or housing property, so risk was negligible.
References
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Tsionas, E.G. (2014). The Case of Free Banking. In: The Euro and International Financial Stability. Financial and Monetary Policy Studies, vol 37. Springer, Cham. https://doi.org/10.1007/978-3-319-01171-4_14
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DOI: https://doi.org/10.1007/978-3-319-01171-4_14
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