Central banking and related institutions were not created de novo but as responses (however misguided) to prior problems caused by fractional-reserve banking. Contrary to Selgin, the only permanent beneficiaries of fractional-reserve banking are the bankers themselves.

Banking and FinanceBanking Law and RegulationEconomic PolicyEconomyFiscal Policy/DebtGovernment and PoliticsLaw and LibertyTaxes
Other Independent Review articles by Jorg Guido Hulsmann
Winter 2002/03 Has Fractional-Reserve Banking Really Passed the Market Test?