A bank not subject to reserve requirements and able to supply both currency and deposits can expand more the more slowly people spend its money; in the limiting case where nobody ever writes checks, a bank could expand forever because it would never lose reserves.

causalpending

Speaker

George Selgin

Evidence Quote

that bank could expand forever because no one's ever writing a check so it's never going to lose a dollar of reserves

Source

George Selgin on Free Banking 11/17/2008EconTalk
Created: 6/15/2026, 9:20:23 AM

My Notes

Loading notes...