A tour de force of modern scholarship, this book is one of the most impressive titles in the field of Austrian Economics to appear in years. This second edition includes a new introduction which puts the current financial crisis into context.
Can the market fully manage the money and banking sector? In this major book Jesús Huerta de Soto argues that the market can manage the money and banking sector, that it can again, without inflation, without business cycles, and without the economic instability that has characterized the age of government control.
A complete comprehensive treatise on economic theory, the book is sweeping, revolutionary, and devastating - not only the most extended elucidation of Austrian business cycle theory to ever appear in print but also a decisive vindication of the Misesian-Rothbardian perspective on money, banking, and the law.
Its five main contributions:
• A wholesale reconstruction of the legal framework for money and banking, from the ancient world to modern times
• An application of law-and-economics logic to banking that links microeconomic analysis to macroeconomic phenomena
• A comprehensive critique of fractional-reserve banking from the point of view of history, theory, and policy
• An application of the Austrian critique of socialism to central banking
• The most comprehensive look at banking enterprise from the point of view of market-based entrepreneurship.
De Soto provides also a defense of the Austrian perspective on business cycles against every other theory, defends the 100% reserve perspective from the point of view of Roman and British law, takes on the most important objections to full reserve theory, and presents a full policy program for radical reform.<