The Tom Woods Show, episode 745.

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Ron Paul homeschool.com. Hello everybody. Tom Woods here. Fractional Reserve Banking is the topic

for today, just because we haven't done it yet, and I'd like to talk about it.

What's the deal in terms of the economic consequences of fractional reserve banking?

That's a controversial question in some circles, and we're going to tackle it today with Jeff Herbiner, our old friend who is chairman of the Department of Economics at Grove City College, which, by the way, is where Hans Senholz taught, if that name rings a bell to you.

He is also associate editor of the quarterly journal of Austrian economics and a faculty member at my libertyclassroom.com.

Did you imagine, by the way, having a year, for a whole year being able to ask this guy

any economics question you have for a year? Think about what you would pay for that, and I guarantee

you it's way, way, way less at Liberty Classroom.com. Jeff, welcome back to the show.

Hey, thanks, Tom. Great to be here.

Here we are in the 740s of episodes, and I've had people asking me for an episode on Fractional Reserve Banking since episode number one.

And all I can say is, look, I've been busy.

So here it is.

Here it is.

And we're going to talk not about the legal status of it or, you know, engage in philosophical speculation about it, but instead just the economic effects of fractional reserve banking. And even here, as you've pointed out, there's controversy, even among some people who call themselves Austrians.

So we're going to try and sort all this out.

Now, you were on here some time ago, and I'll link to this episode, I'll link to all your previous episodes, where we talked about what the monetary system would look like

...