The Case Against Fiduciary Media: Ethics is the Key

Abstract

Salerno (http://mises.org/daily/4389,2010a) asserts that in the debate between those who favor and oppose fractional reserve banking, the important issue is not whether or not this institution is inherently fraudulent, but, rather, does it or does it not cause the business cycle. We join this author in thinking both important; however, we reverse this order.