By Larry J. Sechrest
Sechrest sets out a detailed and thorough case on behalf of free banking. New insights into both the theoretical and historical dimensions of the subject are found throughout the text. A formal model of free banking suitable for classroom use extends the work of earlier researchers. The relationship between free banking and Say's Law is discussed, as is also the proper goal of monetary policy. New evidence on the historical experiments with free banking in Scotland and the United States is provided, and a comparative review of free banking models is included as well.