The Mystery of Banking is not just another book on banking.  It pulls back the curtains that hide the flaws of fractional-reserve banking and explains the differences between loan banks and deposits banks.  Further, it discusses why free banking would provide a much more stable banking system without the inflation that is inherent in any system that utilizes a central bank. The Mystery of Banking also discloses how loan banks and deposit banks were married because of poor legal decisions. Although many books discuss fractional-reserve banking, Murray Rothbard, with simple T-charts, explains the simplicity of fractional-reserve banking and discloses why it inflates the money supply. … Continue reading The Mystery of Banking