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On Genuine Deregulation: Reply to Selgin and Bossone
By Hugh Thomas
Introduction
George Selgin and Biagio Bossone have taken much time and effort to analyze my proposal for banking deregulation (Thomas 2000). Selgin challenges many points in my proposal, but he shares my underlying belief in banking reform and the superiority of the private sector. We both favor eliminating deposit guarantees and removing restrictions on banks' ability to offer mutual fund accounts. Bossone wishes to see banking remain an oligopoly that is closely regulated by the government, but he too favors modest reforms. In this reply, I highlight the differences between myself and Selgin, correct some of his misconceptions, and explain my proposal in greater detail. I also take issue with Bossone but show how his reforms partly coincide with mine.
Full Text (PDF, 11 pages, 57 KB)