Laissez Faire Banking

<p>The idea of free (or laissez-faire) banking has enjoyed a remarkable renaissance in recent years. It is a novel idea that challenges much of what many banking scholars still take for granted - that banking is inherently unstable that the banking system needs a lender of last resort or deposit insurance to defend it in a crisis and that the Government has to protect the value of the currency. Against this free banking sets an argument which is in essence very simple: if markets are generally better at allocating resources than governments then what is different about money and the industry that provides it and why? Laissez-Faire Banking is divided into three inter-related sections dealing with the theory of free banking historical experiences of it and present-day monetary and banking reforms based on free banking principles. </p>