Eva

to all readers: this is just a working draft of the project. Please, do not read!!!

FREE BANKING SYSTEM- CHAOS OR HARMONY

“Government failure might be worse than market failure” Milton Friedman and Anna Schwartz

After carrying out a sustentative research on the history of the American banking system, prominent economists such as Milton Friedman and Anna Schwartz claim in their book “A Monetary History of the United States” that often “turning to the government as an alternative was a cure that was worse than the disease.” But before advocating the mechanisms of efficient functioning of the free banking system, a brief description of its structure merits deliberation.