Entrepreneurial Error Does Not Equal Market Failure
Barnett and Block (2015) claim that Bagus and Howden (2012b) support indirectly the concept of market failure. In this paper, we show that maturity mismatching in an unhampered market may imply entrepreneurial error but cannot be considered a market failure. We demonstrate why fractional-reserve ban...
| Autori: | ; ; |
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| Tipo di documento: | Elettronico Articolo |
| Lingua: | Inglese |
| Verificare la disponibilità: | HBZ Gateway |
| Journals Online & Print: | Caricamento...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Pubblicazione: |
Springer Science + Business Media B. V
2018
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| In: |
Journal of business ethics
Anno: 2018, Volume: 149, Fascicolo: 2, Pagine: 433-441 |
| Altre parole chiave: | B
P16
B Austrian business cycle B Compatible contracts B E59 B Banking ethics B Fractional-reserve banking B Maturity mismatching B E2 |
| Accesso online: |
Accesso probabilmente gratuito Volltext (lizenzpflichtig) |
| Riepilogo: | Barnett and Block (2015) claim that Bagus and Howden (2012b) support indirectly the concept of market failure. In this paper, we show that maturity mismatching in an unhampered market may imply entrepreneurial error but cannot be considered a market failure. We demonstrate why fractional-reserve banking leads to business cycles even if there is no central bank and why maturity mismatching does not per se lead to clusters of errors in a free market. Finally, in contrast to the examples provided by Barnett and Block, we assure that maturity mismatching does not imply the creation of two incompatible contracts due to the fungible nature of money. |
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| ISSN: | 1573-0697 |
| Comprende: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-016-3123-9 |