Read INHERENT INSTABILITY IN BANKING: THE FREE BANKING EXPERIENCE:

https://pdfs.semanticscholar.org/ca4d/802fc714155b66465effa4d41ea5dd6840a0.pdf

Notes on Rolnick and Weber (1986): p. 883 contains an error. In the following sentence, the terms extrinsic and intrinsic are reversed: "If such a local real shock can be identified, then these failures can be assumed to be due to extrinsic uncertainty. Otherwise, the intrinsic uncertainty explanation may be more appropriate."

2. Concisely describe the viewpoint that the author is responding to with this article.
4. Summarize the reasoning and/or evidence that has been offered to support this viewpoint.
6. According to the author, what is the most important problem with this viewpoint?
8. What viewpoint does the author argue for instead?
10. What reasoning or evidence does the author provide to support his or her own viewpoint?
12. What further evidence, if discovered, might strengthen the author's argument?
14. What further evidence, if discovered, might weaken the author's argument?