3min chapter

The "What is Money?" Show cover image

An Examination of Central Banking with Joseph Wang (WiM234)

The "What is Money?" Show

CHAPTER

Do You Need Elastic Money?

I don't actually buy that argument at all. It's a hard disagree for me. I don't think you need elastic money at all. Now that said, I do also believe in free banking. So if you have free banking where they are lending off of their own balance sheet, there is no lender of last resort, then you effectively do have elasticity in the money supply because these guys are free to do whatever they want. They can run fractional reserves. And that free banking reality, that's possible on a gold standard, on a Bitcoin standard, on any standard, frankly. But even if we did need elastic money, it's still possible in a free banking system.

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