In the second half of the 19th century, the Chilean free banking system worked similarly to how Adam Smith describes the 18th century free banking system in Scotland. The characteristics of free banking that Smith identifies as conductive of successful outcomes—free entry, unlimited liability,...

Economic historians remain divided over America’s experiment with free banking during the antebellum era. Some argue that the reforms, which liberalized the bank-chartering process, simply exchanged one set of entry barriers for another, while others hold that free banking improved competition...

Privately issued money can benefit consumers in many ways, particularly in the areas of value stability and product variety. Decentralized currency production can benefit consumers by reducing inflation and increasing economic stability. Unlike a central bank, competing private banks must...