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I was waiting for this. The rest of the post prior has all of those usual """dog-whistles""" that it was like a twist in a movie you can see coming from miles away.
Is it 2008 again? I remember the internet being full of this kind of thing (and being one of the contributors!).
Anyway, it's important to point out that 'full reserve' theorizing is not 'Austrian' economics, it's Rothbardian Austrian economics. The original ABCT doesn't require it to avoid business cycles and Hayek's formulation can be re-cast in essentially monetarist terms as about the interplay of the supply and demand for money without much modification. The supply of loanable funds (a nominal quantity) does not necessarily represent the full production possibilities of the underlying economy (a real one). That is, there are 'real' savings that are not represented by nominal savings at a given price level/quantity of money. The demand for money will be driven, in part, by the investment possibilities created by real savings, so a full reserve banking system will under invest in production, while the fractional reserve system the Rothbardians are against would be able to invest enough for the economy to reach its production possibilities frontier without going beyond it and generating a business cycle.
As to the rest of your post: a lot of what you're talking about with population discount rates would probably be covered in post-war Keynesian literature on the propensity to save/consume. The empirical validity of a lot of it varies, I'm sure, but I can't imagine it's any more questionable than your last two paragraphs.
You are reading too much into what I wrote. I am not Austrian. 100% reserves will not resolve business cycles, nor is that prescription practicable. I think even the New Keynesians have more interesting things to say on economics than Austrians. I happen to work for a large-ish bank that practices fractional reserve banking (as all retail banks do), and I can sleep at night.
I think Cochrane is the closest to being correct of the three that I laid out. I also think his proposal for 100% equity funded banks is both practicable and better aligns savers and borrowers, and will definitively end bank runs. I think all three are closer to being "correct" than the Austrians, whose main claim to fame is thoroughly debunking Marxist economics (admittedly not a high hurdle to clear).
I would love to hear more from you on the post-war Keynesian literature and how it is relevant to the rest of my post; that is the part that actually interests me.
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From within the Austrian framework, I think this claim does not hold. I think what you are saying—and please correct me if I’m wrong—is that there may exist savings held (e.g.) in the form of dollar bills in a deposit box at a bank. These bills cannot be lent out as part of the bank’s operations, and hence the real wealth which they represent can never participate in the economy as “investment”.
However, an Austrian would say that those dollar bills are not savings in the sense of forming part of the supply of loanable funds. Savings-as-loanable-funds are a subset of savings-as-deferred-consumption; the former entails the assumption of some risk, while the latter (as in the case of bills in a deposit box) need not.
If you like, holding money qua money, rather than allowing it to be lent out for investment purposes, could be called “exercising demand for money” or less charitably, “hoarding money”, as distinguished from “saving”. An Austrian would say that such hoarding is economically no different from exercising demand in any other way (e.g., through consumption of real goods/services).
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