George Selgin on Free Banking
By Arnold Kling
He talks with Russ Roberts, who asks skeptical questions.
Selgin thinks that one can have sound unregulated, uninsured banking without reserve requirements of 100 percent. He thinks that bank owners need to have significant capital at risk. Once upon a time, in fact, some banks did not have limited liability, meaning that if the bank could not meet its obligations the owners’ personal wealth was at risk.