Defender of Free Banking Economics

Larry Sechrest (born 1943, United States) is an economist known for his contributions to free banking theory, particularly the role of competitive banking and private money issuance. He has been a significant figure in promoting market-based alternatives to central banking and advocating for the deregulation of monetary systems.

Sechrest’s primary focus has been on the benefits of a free banking system where banks are free to issue their own currencies without government interference. He argues that free competition among private banks would lead to a more stable monetary system than one controlled by a central authority. His work emphasizes the potential for such systems to foster greater monetary stability and reduce inflationary pressures, which are often seen as inherent in centrally controlled systems.

One of Sechrest’s key works is The Case for Free Banking (1984), where he elaborates on the concept of a free-market monetary system, showing how it could operate effectively without the need for a central bank. He also contributed to Money, Bank Credit, and Economic Cycles (1994), which explores the cyclical nature of economic booms and busts under fractional reserve banking and suggests that the elimination of central banks could reduce these cycles.

Sechrest has taught economics at the University of Texas and served in various roles within the Austrian economics community. His research continues to influence discussions on the reform of the monetary system and the role of government in banking.