Talk:Fractional-reserve banking

Fractional-reserve banking is too important a fact of economic life to be without entry in citizendium. Please extend the stub.

--Janos Abel 06:01, 23 April 2007 (CDT)

Notes for editing later tonight: http://www.lewrockwell.com/rothbard/frb.html - Rothbard on fractional reserve http://www.lewrockwell.com/north/north86.html - Gary North on Mises on frb http://www.federalreserve.gov/monetarypolicy/reservereq.htm - federal reserve on reserve requirements http://www.federalreserve.gov/monetarypolicy/0693lead.pdf - history of reserve requirements

I removed the sentence about the controversy because that's not the way the controversy usually plays out. The Lew Rockwell links above are incredibly skeptical of fractional reserve banking, and I will rebuild the controversy based on them. Anthony Argyriou 17:27, 8 May 2007 (CDT)

Anthony, I put in that sentence as a marker for a section on critical views of fractional-reserve. (I am not familiar with the Lew Rockwell critique but will read up on it.)

I also note that you do not believe fractional-reserve is to do with money supply. This makes me wonder if you are aware of the fact that around 95% of the US money supply (and over that in the UK) is created by this means. -- Janos Abel 11:22, 4 June 2007 (CDT)

I don't know how you got the impression that I believe that. I didn't put much directly into the article about fractional reserve banking's role in the money supply, and I did remove the not-really-true statement that changes in the reserve requirement are used to control the money supply. By and large, they're not. The money supply is controlled by buying and selling government bonds to depositors at the Federal Reserve. Anthony Argyriou 13:09, 4 June 2007 (CDT)