Taking a recent Twitter exchange as a springboard, Bob argues that George Selgin has unwittingly conceded the entire argument they had at the SoHo Forum: namely, fractional reserve banking by its very essence causes a mismatch between the community's saving and the funds made available for loans via the banks.

Mentioned in the Episode and Other Links of Interest:

• Keith Vencel's new book, A New Monetary System.
• The SoHo Forum debate between Selgin and Murphy.
• Selgin's posts on ABCT and FRB (one and two).
• Bob's Human Action episode on Mises and FRB.
• Bob's QJAE article on FRB and the business cycle.
• Help support the Bob Murphy Show.