The Problem With Fractional Reserve Banking

Maturement mismatch is where you give somebody piece of paper that says you can come get your gold at any time. And so obviously this didn't solve the problem because then you get a national like a nationwide bank run. Yes, you have a longer boom, but then you have a bigger bust. That's when we get things like the first the forgotten Great Depression in 1920, and then the Great Depression in 1929. The Vima, Germany, the Vima Republican Germany collapsing through hyperinflation.