The "What is Money?" Show cover image

"Money: Free and Unfree" with George Selgin (WiM209)

The "What is Money?" Show

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The Gold Exchange Standard

The gold exchange standard was a move away from entities possessing gold to banks holding their own. So you've got individual fractional reserve banks keeping accounts, keeping their reserves as accounts at a big central fractional reserve bank. This structure becomes exceedingly fragile. And then what you had was, effectively, france staged a run on the bank of england, and the whole thing comes tumbling down.

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