26 Pages Posted: 2 Apr 2011 Last revised: 8 Apr 2011

Date Written: April 4, 2011

Abstract

Despite its title, Philipp Bagus and David Howden's critique of The Theory of Free Banking does more than merely "quibble" with that book's arguments: their criticisms of those arguments are such as to suggest that the very foundation upon which my defense of free banking rests is deeply flawed. Here I defend my work against Bagus and Howden's criticisms, by showing that they rest upon careless or disingenuous readings of my arguments and a poor grasp of basic monetary economics.