Coverart for item
The Resource Legislating instability : Adam Smith, free banking, and the financial crisis of 1772, Tyler Beck Goodspeed

Legislating instability : Adam Smith, free banking, and the financial crisis of 1772, Tyler Beck Goodspeed

Label
Legislating instability : Adam Smith, free banking, and the financial crisis of 1772
Title
Legislating instability
Title remainder
Adam Smith, free banking, and the financial crisis of 1772
Statement of responsibility
Tyler Beck Goodspeed
Creator
Subject
Language
eng
Summary
From 1716 to 1845, the Scottish financial system functioned with no official central bank or lender of last resort, no public (or private) monopoly on currency issuance, no legal reserve requirements, and no formal limits on bank size. In support of previous research on Scottish "free banking, " the author argues that this absence of legal restrictions on Scottish banking contributed to a proliferation of what Adam Smith derisively referred to as "beggarly bankers, " which rendered the Scottish financial system both intensely competitive and remarkably resilient to a series of severe adverse shocks to the small developing economy. In particular, despite large speculative capital flows, a fixed exchange rate, and substantial external debt, Scotland's highly decentralized banking sector effectively mitigated the effects of two severe balance of payments crises arising from exogenous political shocks during the Seven Years' War. The author further argues that the introduction of regulations and legal restrictions into Scottish banking in 1765 was the result of aggressive political lobbying by the largest Scottish banks, and effectively raised barriers to entry and encouraged banking sector consolidation. While these results did not cause the severe financial crisis of 1772, they amplified the level of systemic risk in Scottish credit markets and increased the likelihood that portfolio losses in the event of an adverse economic shock would be transmitted to depositors and noteholders through disorderly bank runs, suspensions of payment, and institutional liquidation. Unlimited liability on the part of Scottish bank shareholders attenuated the effects of financial instability on the real economy.--Provided by publisher
Cataloging source
MH/DLC
http://library.link/vocab/creatorName
Goodspeed, Tyler Beck
Dewey number
332.10941109033
Illustrations
illustrations
Index
index present
Literary form
non fiction
Nature of contents
bibliography
http://library.link/vocab/subjectName
  • Smith, Adam
  • Banking law
  • Banks and banking
  • Financial crises
Label
Legislating instability : Adam Smith, free banking, and the financial crisis of 1772, Tyler Beck Goodspeed
Instantiates
Publication
Bibliography note
Includes bibliographical references (pages 187-201) and index
Carrier category
volume
Carrier category code
nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Contents
A very melancholy situation -- Beggarly bankers -- Procuring an act -- Prodigals and projectors -- Upon Daedalian wings
Control code
FIEb17849329
Dimensions
25 cm.
Extent
x, 208 pages
Isbn
9780674088887
Media category
unmediated
Media MARC source
rdamedia.
Media type code
n
Other physical details
illustrations
System control number
(OCoLC)921821785
Label
Legislating instability : Adam Smith, free banking, and the financial crisis of 1772, Tyler Beck Goodspeed
Publication
Bibliography note
Includes bibliographical references (pages 187-201) and index
Carrier category
volume
Carrier category code
nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Contents
A very melancholy situation -- Beggarly bankers -- Procuring an act -- Prodigals and projectors -- Upon Daedalian wings
Control code
FIEb17849329
Dimensions
25 cm.
Extent
x, 208 pages
Isbn
9780674088887
Media category
unmediated
Media MARC source
rdamedia.
Media type code
n
Other physical details
illustrations
System control number
(OCoLC)921821785

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