Adam Smith et la banque libre

Laurent Le Maux

Brussels Economic Review, 2002, vol. 45, issue 1, 3-36

Abstract: Smith is the forerunner of the free banking theory. Smith develop the law of reflux which asserts that private banks cannot over-issue because the convertibility rule and the market mechanism induce banks to supply just the amount of money that public want to hold. The real bills doctrine of Adam Smith has been misinterpreted and just propose a solution to the law of reflux. Smith is a forerunner too of information asymmetry theory. He shows that banks are confronted with information asymmetry when they discount doubtful bill, and it is in their interest to control actively the quality of their claims.

Keywords: Free Banking; Law of Reflux; Real Bills Doctrine; Information Asymmetry; La Banque Libre; Loi du Reflux; Doctrine des Effets de Commerce Réels; Asymétrie de l'Information (search for similar items in EconPapers)
JEL-codes: E51 G11 (search for similar items in EconPapers)
Date: 2002
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