A foundational Austrian School critique on the fractional reserve system by Mont Pélerin society member and anarcho-capitalist Murray Rothbard (1926-1995).
In The Mystery of Banking, Murray holds that a fractional system encourages credit expansion, thereby exacerbating cycles of boom and bust. It is essentially a textbook written to provide the public with an insight into the inner workings of the banking system in the United States. Rather charmingly, the book is dedicated to “Thomas Jefferson, Charles Holt Campbell, and Ludwig von Mises. Champions of Hard Money.”
