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.
DOI
10.4284/0038-4038-2013.163
Publisher
Southern Economic Association
Repository Citation
Paganelli, M.P. (2014). David Hume on banking and hoarding. Southern Economic Journal, 80(4), 968-980. https://doi.org/10.4284/0038-4038-2013.163
Publication Information
Southern Economic Journal
