Free Banking: Theory, History and a Laissez-Faire Model (Larry J. Sechrest)
- Highlight Loc. 4233-37 | Added on Monday, January 02, 2012, 01:21 AM
For Rothbard, there are three separate allocative channels for one’s income: consumption, cash balances, and savings-investment (these two are always equal). As suggested above, this reasoning leads to a model in which discoordination can arise between the money and credit markets, and it raises a troublesome question. How can one deny that to refrain from consumption expenditures in order to increase one’s money balances is to engage in voluntary saving? Yet this is what Rothbard apparently does deny.
