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The New York Free Banking Era: Deregulation Or Reregulation?, Andrew J. Economopoulos
The New York Free Banking Era: Deregulation Or Reregulation?, Andrew J. Economopoulos
Business and Economics Faculty Publications
The deregulation of the banking market is a frequently debated policy issue. Proponents of deregulation claim that free market forces would improve market efficiency. The basis for their argument is grounded in the work and tenets of Adam Smith. Deregulation opponents claim that a bank market left unfettered would disrupt the financial market; bank mismanagement, failures, and panics would pervade the market and cause distrust of the banking system . Opponents of deregulation derive their beliefs from actual historical experiences rather than theory . Many opponents point to a period of American banking history, called the Free Banking Era (1838-1863), …