Master of Arts (MA)
First Committee Member
Murray N. Rothbard
Number of Pages
This thesis is a theoretical criticism of fractional reserve banKing The Austrian school (especially the works of Mises, Hayek and Rothbard), consider credit expansion to be the genesis of macro-economic instability; This study applies Austrian interest, capital and business cycle theory to challenge the widely held assumption that our present economic system is fundamentally sound. Using a theoretical construct known as the "Angel Gabriel Model", the devastating consequences of continuing credit expansion are explored. Fractional reserve free banking is also considered within this model and found to be an unsatisfactory option when compared to 100 percent reserve banKing In conclusion, policy proposals and system transition are considered in the event of a general economic collapse.
Austrian; Austrian Theory; Banking; Fractional; Genesis; Instability; Macro; Reserve; Theory
Economics; Commerce; Banks and banking
University of Nevada, Las Vegas
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Koch, John Nicholas, "Fractional reserve banking: The genesis of macro-instability" (1991). UNLV Retrospective Theses & Dissertations. 209.