Jesus Huerta de Soto

In the 2010 Hayek Memorial Lecture at the London School of Economics and Political Science the author argues that flows in the design of monetary and financial system were responsible for the global financial crisis and the subsequent recession. The crash reflected the unsustainable nature of the bubble induced by artificial credit expansion created by the fractional-reserve banking under the direction of central banks. Such boom-bust cycles will continue until radical reforms are implemented, including a 100% reserve requirement for demand deposits.