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The issuance of Greenbacks didn`t cause panics, the use of fractional reserve banking is what causes panics. Even if you print Greenbacks banks can still create alot of money using fractional reserve banking. Changes in reserve rereuqiments cause huge swings up and down in the money supply which leads to a boom bust economy with huge highs an huge panics. If fractional reserve banking would have been eliminated along with printing Greenbacks the economy would have been much more stable.
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