Rise of National Banks explores the evolution of central banking and its profound influence on national economies. The book examines the historical context that led to the establishment of national banks, highlighting the financial instability that preceded their creation. For instance, unregulated banking systems were often plagued by panics and crises.
It also traces the development of banking from its early forms through the rise of fractional reserve banking, emphasizing the increasing need for a central authority to manage monetary policy, such as controlling inflation and interest rates.
The book's argument centers on the idea that national banks, despite their controversies, were a necessary step in modern economic development, providing stability and enabling economic growth. It shows that the benefits of central banking often outweigh the drawbacks when governed with transparency and accountability.
The book progresses by introducing fundamental concepts, examining historical development in key countries, exploring core functions like monetary policy implementation and bank supervision, and analyzing controversies such as independence and accountability.
