My current plan is to mainly work on a new manuscript with the working title “Fractional Reserve Banking And Its Discontents.” This is a combination of a primer on banking, as well as an attempt to discuss some of the common sources of mysticism about banking.
Thanks. I follow him on Twitter, so I see his views. I don’t see myself going down the rabbit hole of debating the viability of free banking; I am interested in the actual banks that exist in 2022.
Central Banking 101 by Joseph Wang is a quick and easy read with some good sources. Goes mainly through how money works and how it is controlled by the central banking system. Goes slightly into retail/commercial/corporate banks but under the scope of how money flows through. Would need to bridge that with Dodd-Frank (probably surrounding FSOC & Volcker Rule), Basel III, and modern banking stress testing. Feels like the part explaining how the money moves around much easier to explain simply than the regulations that govern the lending limits and controls on FRB post-GFC.
Thanks for the recommendation. I certainly won’t attempt to go into the intricacies of bank regulation, particularly since I have an international audience.
I don't understand why you feel that a book about "fractional reserve banking" (FRB) should be the major focus of your work *now*. Apart from people who have a stake in one school of economic thought or another (a category I myself fall into), who is so concerned with FRB that you need to write something to clarify their concerns? Politicians? Bankers? Central bankers? Pundits?
It’s a primer. Banking systems are badly understood, and they come up all the time in internet debates.
The theoretical question “what limits bank lending?” is tied to discussions of the business cycle. The “fractional reserve” part is only of interest to internet arguments with Austrians/crypto fans.
I've found George Selgin's writing useful for understanding how banks work. Have you read his The Theory of Free Banking: Money Supply under Competitive Note? (https://oll.libertyfund.org/title/white-the-theory-of-free-banking-money-supply-under-competitive-note-issue)
Thanks. I follow him on Twitter, so I see his views. I don’t see myself going down the rabbit hole of debating the viability of free banking; I am interested in the actual banks that exist in 2022.
Central Banking 101 by Joseph Wang is a quick and easy read with some good sources. Goes mainly through how money works and how it is controlled by the central banking system. Goes slightly into retail/commercial/corporate banks but under the scope of how money flows through. Would need to bridge that with Dodd-Frank (probably surrounding FSOC & Volcker Rule), Basel III, and modern banking stress testing. Feels like the part explaining how the money moves around much easier to explain simply than the regulations that govern the lending limits and controls on FRB post-GFC.
Thanks for the recommendation. I certainly won’t attempt to go into the intricacies of bank regulation, particularly since I have an international audience.
I don't understand why you feel that a book about "fractional reserve banking" (FRB) should be the major focus of your work *now*. Apart from people who have a stake in one school of economic thought or another (a category I myself fall into), who is so concerned with FRB that you need to write something to clarify their concerns? Politicians? Bankers? Central bankers? Pundits?
It’s a primer. Banking systems are badly understood, and they come up all the time in internet debates.
The theoretical question “what limits bank lending?” is tied to discussions of the business cycle. The “fractional reserve” part is only of interest to internet arguments with Austrians/crypto fans.