tag:blogger.com,1999:blog-2277215496195926573.post175355967649029508..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Brad DeLong’s flawed criticisms of full reserve banking. Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-64864201512980953762012-09-21T08:46:36.898-07:002012-09-21T08:46:36.898-07:00Sounds to me as though you haven’t bothered lookin...Sounds to me as though you haven’t bothered looking at Selgin’s reason for saying that a switch from full to fractional reserve involves a temporary bout of inflation. I say that because his reasons derive from some pretty fundamental characteristics of the two systems. And that casts doubt on your claim that the temporary bout of inflation all depends on “how it is implemented”.<br /><br />Your claim is a bit like saying cars can be made to run without consuming energy. The latter claim breaks fundamental laws of the universe, so it’s a doubtful claim. Still I might be wrong: fill me in with the details.<br /><br />Re your claim that there is no difference between full and fractional, that’s the umpteenth time you made that claim. About 99% of those who have studied the two think there are significant differences. And some of those individuals (e.g. George Selgin, Lord Keynes, Huerta de Soto, etc) have read vastly more on the subject than you or me.<br /><br />How about you spelling out in detail why you think there is no difference and why the hundreds of people who have studied full and fractional are all wrong. You’ll earn yourself fame for making a truly original and ground-breaking point.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-35071215995224236712012-09-21T02:32:18.345-07:002012-09-21T02:32:18.345-07:00"As Selgin rightly points out, switching FROM..."As Selgin rightly points out, switching FROM full reserve TO fractional reserve would have a temporary INFLATIONARY EFFECT."<br /><br />Not necessarily. Like all systems it depends how it is implemented.<br /><br />You can't use the 'car with square wheels doesn't mean cars are a bad idea' with full reserve without the same 'just use a different design' applying to fractional reserve.<br /><br />The systems are identical. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com