“Fractional reserve banks are sitting ducks and are always subject to contraction. When the banks' state of inherent bankruptcy is discovered, for example, people will tend to cash in their deposits, and the contractionary, deflationary pressure could be severe.”

American economist and political theorist

Murray Newton Rothbard was an American economist, economic historian, political theorist, and activist. He was a major figure in 20th-century American libertarianism and a founder and leading thinker of anarcho-capitalism. He wrote more than twenty books on political theory, history, economics, and related subjects. His work placed him at the center of debates over liberty, markets, and the role of the state.