Bob returns to the fractional reserve banking debate to clarify a point the critics keep missing: in the Mises-Hayek-Rothbard framework, it's fractional reserve banking itself that sets the boom-bust cycle in motion, not merely central banks.

Related:

• Lawrence White, Free Banking in Britain: Mises.org/HAP561a
• Bob's Previous Episode on Rothbard vs Free Bankers: Mises.org/HAP561b
• Bob's Paper on the History of Fractional Reserve Free Banking: Mises.org/HAP561c
• Roger Garrison's Presentations on Capital-Based Macroeconomics: Mises.org/HAP561d