Bank runs and financial panics are actually rare worldwide and not an inevitable consequence of fractional-reserve competitive banking; they were far more common in the US than in Canada (which had no panics) and more common in England than in Scotland, indicating instability has to do with how banks are regulated rather than with banking itself.

causalpending

Speaker

Larry White

Evidence Quote

they're much more common in the US than in Canada where there are no financial panics they're much more common in England than than in Scotland

Source

Larry White on Hayek and Money 02/01/2010EconTalk
Created: 6/17/2026, 10:31:20 AM

My Notes

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