Ep. 252 Bob’s Reaction to the Bernanke/Diamond-Dybvig Nobel Award
Bob Murphy Show
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What Are You Doing? That's Not Money.
Some Austrians, in particular, Walter Block and William Barnett have argued that fraction reserve banking is just the most famous example of this more general problem of maturity mismatch. The community treats immediately payable claims to money issued by reputable banks as being economically interchangeable with the actual money. So then there's no issue of the bank borrowing short and lending long; all of the assets and liabilities should be of the same maturities.
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