Would like your thoughts on the above. I have read rothbard and others about the evils of fractional reserve banking.
I had a stray thought-fractional reserve banking would not be that bad if there were competing banks that did not engage in the practice.
In that instance the fractional reserve banks would have to offer higher interest rates and manage their money better and perhaps put time and withdrawal restrictions on their deposits.
I think like alternative currencies, that fractional reserve banking could work in a free market.
Am I way off base?