Using historical examples, this book attempts to demonstrate that unregulated banking can be successful and that central banks' beneficial contribution has been greatly exaggerated. Topics covered include a description of the experiment with free banking during the French Revolution.

The study of financial history has never been more important. This volume focuses on theories about the relationship of financial markets to the rest of the economy. Searching out information on financial institutions and markets from the past, this work tests theories from the 1980s and 90s with this data, mainly in two fields of economics: financial structure and performance and economic development. Understanding and testing the relationship between money and credit and the level of output in the economy, the author emphasizes, may help predict or prevent business cycles and even make it possible to increase the rate of development and growth of an economy. Although this volume focuses on one geographical and historical area of the US economy, the lessons and implications are relevant for the global economy of the 21st century.

From 1716 to 1845 Scottish banks were among the most dynamic and resilient in Europe, effectively absorbing economic shocks that rocked markets in London and on the continent. Tyler Beck Goodspeed explains the paradox that Scotland’s banking system achieved this success without the regulations Adam Smith considered necessary for economic stability.

This comparative study explores how shadow banking differs from the traditional banking system. It discusses the origins, history, purposes, risks, regulatory constraints, and projected future evolution of both financial sectors of the world economy. This thorough examination of non-bank financial intermediaries follows the migration of services from traditional banks to less-regulated alternative banking products, as well as the evolution of regulations and the Financial Stability Oversight Council to monitor these new entities. Three chapters explore in depth the major financial structures newly designated as systemically important financial institutions (SIFIs), with particular attention to insurance companies such as MetLife, which seek exemption from the designation. Finally, the focus shifts to international financial institutions' efforts to protect consumers and curtail irresponsible shadow banks, with an eye toward the effects of these actions on future banking practices.