Document Type

Article

Publication Date

2014

Abstract

David Hume opposes banks and favors hoarding. The only bank he reluctantly approves of is a public, 100% reserve bank. Other banks increase money supply and prices, hindering exports and economic growth. For Hume, a 100% reserve public bank would lead to ‘‘the destruction of paper-credit’’ ([1752] 1985, p. 285), fostering economic growth instead by preventing inflation. Additionally, a 100% reserve bank hoards a large quantity of gold and silver, which is available in case of national emergency.

Document Object Identifier (DOI)

10.4284/0038-4038-2013.163

Publication Information

Southern Economic Journal

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Economics Commons

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