13 found
Order:
  1.  18
    The Continuing Continuum Problem of Deposits and Loans.Philipp Bagus & David Howden - 2012 - Journal of Business Ethics 106 (3):295-300.
    Barnett and Block (J Bus Ethics 18(2):179–194, 2011 ) argue that one cannot distinguish between deposits and loans due to the continuum problem of maturities and because future goods do not exist—both essential characteristics that distinguish deposit from loan contracts. In a similar way but leading to opposite conclusions (Cachanosky, forthcoming) maintains that both maturity mismatching and fractional reserve banking are ethically justified as these contracts are equivalent. We argue herein that the economic and legal differences between genuine deposit and (...)
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark   14 citations  
  2.  53
    The Legitimacy of Loan Maturity Mismatching: A Risky, but Not Fraudulent, Undertaking.Philipp Bagus & David Howden - 2009 - Journal of Business Ethics 90 (3):399-406.
    Barnett and Block (Journal of Business Ethics, 2009 ) attack the heart of modern banking by claiming that the practice of borrowing short and lending long is illicit. While their claim of illegitimacy concerning fractional reserve banking can be defended, their justification lacks substance. Their claim is herein strengthened by a legal analysis of deposits and loans based on Huerta de Soto (Money, Bank Credit and Economic Cycles, 2006 ). A combined legal and economic analysis shows that while lending deposits (...)
    Direct download (5 more)  
     
    Export citation  
     
    Bookmark   18 citations  
  3.  34
    Some Ethical Dilemmas of Modern Banking.Philipp Bagus & David Howden - 2013 - Business Ethics 22 (3):235-245.
    How ethical have recent banking practices been? We answer this question via an economic analysis. We assess the two dominant practices of the modern banking system – fractional reserves and maturity transformation – by gauging the respective rights of the relevant parties. By distinguishing the legal and economic differences between deposit and loan contracts, we determine that the practice of maturity transformation (in its various guises) is not only ethical but also serves a positive social function. The foundation of the (...)
    Direct download (7 more)  
     
    Export citation  
     
    Bookmark   12 citations  
  4.  9
    Some Ethical Dilemmas of Modern Banking.Philipp Bagus & David Howden - 2013 - Business Ethics: A European Review 22 (3):235-245.
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   12 citations  
  5.  17
    Oil and Water Do Not Mix, Or: Aliud Est Credere, Aliud Deponere.Amadeus Gabriel, David Howden & Philipp Bagus - 2015 - Journal of Business Ethics 128 (1):197-206.
    The financial crisis has led to new interest in the ethics of financial markets. In this article, we further the debate on the nature of banking contracts by showing that the fundamental subjective purposes of loan and deposit contracts are irreconcilable. Any resultant mixture of the two contracts is a legal aberration. We consider a mutual fund as an important and legitimate alternative to the common demand deposit to provide high liquidity and some yield without offering full availability of a (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   6 citations  
  6.  14
    Reassessing the Ethicality of Some Common Financial Practices.Philipp Bagus, Amadeus Gabriel & David Howden - 2016 - Journal of Business Ethics 136 (3):471-480.
    Depositors have perceived banks as acting unethically during the most recent recession. One area of consternation is the ambiguity of the legal obligations entailed by the deposit contract when it is backed with only fractional reserves. In this article, we apply an existing analysis of the legitimacy and ethicality of banking practices to a wider range of financial transactions, including insurance policies, securities lending, perpetual bonds, and callable loans. Securities lending in particular creates rights violations analogous to those in fractional-reserve (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   3 citations  
  7.  29
    The Ethics of Tax Evasion.Philipp Bagus, Walter Block, Marian Eabrasu, David Howden & Jeremie Rostan - 2011 - Business and Society Review 116 (3):375-401.
    Direct download (5 more)  
     
    Export citation  
     
    Bookmark   3 citations  
  8.  5
    The Hubris of Hybrids.Philipp Bagus, David Howden & Amadeus Gabriel - 2017 - Journal of Business Ethics 145 (2):373-382.
    In the pages of this journal, a fruitful debate has evolved on the ethical legitimacy of fractional-reserve banking. In this article, we respond to the new arguments raised by Evans as we clarify our position on the unethical and illegitimate nature of fractional-reserve banking. Fractional-reserve banking is not a recent financial innovation but represents a long-standing legal aberration. The co-mingling of two mutually exclusive financial contracts, deposit and loan, confounds the contracting parties’ purposes, intents, rights, and obligations. As a result, (...)
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  9.  15
    Entrepreneurial Error Does Not Equal Market Failure.Philipp Bagus, David Howden & Jesús Huerta de Soto Ballester - 2018 - Journal of Business Ethics 149 (2):433-441.
    Barnett and Block claim that Bagus and Howden support indirectly the concept of market failure. In this paper, we show that maturity mismatching in an unhampered market may imply entrepreneurial error but cannot be considered a market failure. We demonstrate why fractional-reserve banking leads to business cycles even if there is no central bank and why maturity mismatching does not per se lead to clusters of errors in a free market. Finally, in contrast to the examples provided by Barnett and (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  10.  15
    On the Necessary and Sufficient Conditions for Legitimate Banking Contracts.Philipp Bagus, Amadeus Gabriel & David Howden - 2018 - Journal of Business Ethics 147 (3):669-678.
    What role do demand deposits serve in the financial system? The answer to this simple question has great implications in keeping the legal terms of the contract consistent with the demands of the financial system. Demand deposits are a perfect monetary substitute. Since money is only held to hedge against perceived uncertainty in both the timing and magnitude of future expenditures, demand deposits are demanded for the same reason. From this we derive three main conclusions. First, a financial contract similar (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  11.  4
    Handbook on Contemporary Austrian Economics, Edited by Peter J. Boettke. Cheltenham : Edward Elgar, 2010, 174pp. [REVIEW]David Howden - 2012 - Erasmus Journal for Philosophy and Economics 5 (1):100.
  12. 18. “Unanswered Quibbles with Fractional Reserve Free Banking”.Philipp Bagus & & David Howden - unknown
    In this article we reply to George Selgin’s counterarguments to our article “Fractional Reserve Free Banking: Some Quibbles”. Selgin regards holding cash as saving while we focus on the real savings necessary to maintain investment projects. Real savings are unconsumed real income. Variations in real savings are not [...].
    Translate
     
     
    Export citation  
     
    Bookmark  
  13.  2
    Causes and Consequences of Inflation.Philipp Bagus, David Howden & Amadeus Gabriel - 2014 - Business and Society Review 119 (4):497-517.
    No categories
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark