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Talk about great timing. Rothbard's extraordinary book unravels
the mystery of banking: what is legitimate enterprise and what is a
government-backed shell game that can't last. His explanation is
clear enough for anyone to follow and yet precise and rigorous
enough to be the best textbook for college classes on the topic.
This is because its expositional clarity--in its history and
theory--is essentially unrivaled. Most notably, he uses the
T-account method of explaining the relationship between deposits
and loans, showing the inherent instability of fractional-reserve
banking and how it sets the stage for centralization, inflation,
and the boom-bust cycle. But there is more. This book provides an
explanation of money's origins and its meaning in the free market.
The abstract theory is here, but always with real application to
history and modern banking practice. Never does a paragraph go by
without an example drawn from his massive knowledge of the subject.
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