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The Destabilizing Consequences of Central Banking

George Selgin

Presented at: OCON 2015

Date: Jul 03, 2015

The talk explores the fiscal origins of currency monopolies and the adverse consequences stemming from their establishment, including their tendency to promote booms and busts; reviews the origins of the doctrine that they should serve as "lenders of last resort"; and explains why last-resort lending tends in practice to generate moral hazard problems that lead to still greater financial instability. Some time is devoted to the special case of the U.S. Federal Reserve System.


Parts: 1

Handout: none