What would happen if fractional reserve banking were ended?
... just as the State
has no money of its own, so it has no power of its own - Albert Jay Nock
Fractional Reserve Banking != federal reserve.
Meistro:What would happen if fractional reserve banking were ended?
We'd go back to the good ole days. 100% reserve banking.
Deposits or borrowing wouldn't effect the money supply.
Banks could only lend out what's in their vaults - only the timed accounts as well.
It depends on the situation and the environment; also, how is the FRB liquidated?
The Origins of Capitalism
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