New Evidence and Some Clarifications on the Ethical Implications of Hybrid Banking Contracts

• Published in: Quarterly journal of Austrian economics Vol. 24; no. 4; pp. 591 - 605
• Main Author: Evans, Anthony
• Format: Journal Article
• Language: English
• Published: Auburn Ludwig von Mises Institute 15.12.2021
• Subjects: Bank reserves; Banking; Banking industry; Business cycles; Business ethics; Debates; Deposit accounts; Ethical dilemmas; International finance; Loans; Public policy; Regulation of financial institutions; Reserve requirements

This article provides a potential denouement of a rich debate about one of the most contentious ethical issues in economics: fractional reserve lending. It provides a considered response to Philipp Bagus, David Howden, and Amadeus Gabriel’s (2017) claim that hybrid contracts are examples of “hubris,...