2005 Fiscal Year Final Research Report Summary
The theoretical and historical studies of the controversy between central banking and free banking
| Project/Area Number |
14530006
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済理論
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| Research Institution | University of Yamanashi |
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Principal Investigator |
OTOMO Toshiaki UNIVERSITY OF YAMANASHI, Faculty of Education & Human Sciences, Professor, 教育人間科学部, 教授 (90194224)
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| Project Period (FY) |
2002 – 2005
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| Keywords | free banking / central banking / currency dispute / central bank / trade cycle / credit crisis |
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| Research Abstract |
The applicant performed the collection of data in the British library and Cambridge university library, and collected the primary data which surpassed about 100 points. Based on this research, I wrote the article "Speculation and Credit : The 1825 Crisis and the Free Banking School". This was published in Bulletin of the Faculty of Education & Human Sciences, University of Yamanashi, Vol.7, No.2, 2006. I divided the central banking and the free banking dispute into three stages. The first dispute is that between J.R.McCulloch and H.Parnell. The second one is that between T.Tooke and J.W.Gilbart. The third one is that between J.W.Gilbart and J.G.Hubbard. The base of the free banking school was built by Parnell and was further developed by Gilbart. The focus of the first dispute is to distinguish between the over issue of paper and the expansion of credit. And that of the second one is what the bank advances. The central banking school saw the advance of bank as the advance of monied capital and capital, while the free banking school divided it into the two, the supply of currency and the advance of capital. Moreover, that of the third one is the relation of the passivity and activity of the bank credit. Gilbart insisted the passivity of bank credit and the view of neutral credit, while Hubbard emphasized the viewpoint which looked at the activity character in the passivity of bank credit. The free banking school was the third school from which both the banking school and the currency school differ at such a point.
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Research Products
(2 results)
