From: N
Sent: Monday, April 24, 2017 9:45 AM
To: [email protected]
Subject: Overselling versus Fractional Reserve Currency
What in principle is different about United Airlines overselling seats on a plane, with a carriage contract allow them to deny a seat, and a bank “overselling” deposits by lending out most of what is deposited while having the contractual right to deny withdrawal during a run?
Dear N: Read this article for the answer to your question:
Hoppe, Hans-Hermann, with Guido Hulsmann and Walter E. Block. 1998. “Against Fiduciary Media,” Quarterly Journal of Austrian Economics, Vol. 1, No. 1, pp. 19-50, http://www.mises.org/journals/qjae/pdf/qjae1_1_2.pdf;
http://www.qjae.org/journals/qjae/pdf/Q11_2.pdf; translated into Spanish and published as “Contra los medios fiduciaros,” Libertas, No. 30, May 1999, pp. 23-73; 2011 translation and reprint in Romanian Economic and Business Review
