DIGG THIS In response to Walter Block’s online discussion with Bryan Caplan regarding fractional reserve banking (FRB), Eric Posner has written an article in which he attempts to justify FRB on the basis of a supposed contractual arrangement between bank and depositor. Posner criticizes Block for not understanding the difference between property rights and contract rights. Block has responded in an article called Is Fractional Reserve Banking Fraudulent? in which he rightly likens the FRB contract to selling a "square circle." Let us examine further where Posner’s argument fails, and why the alleged FRB contract does indeed involve a logical … Continue reading Fractional Reserve Banking Is Indeed Fraudulent