This is has links to three parts of Dr. Selgin's essay on franctional reserve banking. His thesis is that 'fractional reserve banking' does not equate with the 'Austrian' school theory of the business cycle. Each of these article which appeared on the alternate money web site generated much comment. Professor Selgin replies to most of them. It seems to me that there is no real consensus about what 'money' itself is or is not - let alone what banking practices with respect to making loans on the basis of their deposits will do to the total money supply. And as far as I can see the discussion ignores the role of financial instruments such as CDO's. The discussions delve into what the most important 'Austrian school' doyens may or may not have believed - these included von Mises, Hayek, Rothbard and Manchup.
Fractional reserve banking and Austrian Business cycles - part I
Fractional reserve banking and Austrian Business cycles - part II
Fractional reserve banking and Austrian Business cycles - part III
Selgin, George - Money Free and Unfree
Salerno, Joseph - Fractional Reserves and the Fed
Selgin, George - The Modern Money Theory that is Too Good to Be True
Selgin, George - The Theory of Free Banking: Money Supply under Competitive Note Issue