Only econ nerds will be interested in this free book…

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I was stumble around the internet and found this interesting free downloadable book which reviews the notion of central banking and their abject failure. From the country with the Grandmother of all central banks, the Bank of England, this booklet looks north to Scotland for positive feedback on how to run a ‘free banking’ alternative.

Free banking systems have three core features:

  • No central bank.
  • Private banks issue bank notes in competition with one another.
  • The public is free to accept or reject bank notes as they chose.

As we suffer the incompetence of the Federal Reserve some of you might like to look at ways we might fix it. The booklet is from the Institute of Economic Affairs in the UK. The IEA is an educational charity and the UK’s original free market think tank, founded in 1955. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

A new book outlines how the ‘free banking’ alternative to central banks can and has delivered stability and prosperity.

  • Central banks have consistently failed to keep down inflation and ensure financial stability.
  • There have been at least sixty historical episodes of free banking, ranging from several years to over a century.
  • Scotland, France, and the antebellum United States, among many other examples, demonstrate the possibility of economic development without a central bank.
  • The Experience of Free Banking includes chapters authored by over a dozen leading international academics in economic and monetary history.