Can anyone point to a study/article on how cheap money central bank monetary policy redistirbutes to the already-wealthy and powerful?
Thanks
are you asking in way of loans?
all money redistributes to those providing goods and services to the market. The people providing the most beneficial good or service to the market will also get the highest percentage of that money too.
So how are you figuring redistribute?
People who recieve the money first enjoy the benefits of the extra money before prices rise. Gradually, as the money moves through the system, prices begin to rise. The people who recieve the money last have only higher prices to show for it. Thus wealth is redistributed from the later recipients to the earlier recipients.
'' The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.'' Stephen Hawking
For more see The Ultimate Beginner meta-thread:
Fiat money advocates, aka "Greenbackers"
Fractional & full reserve banking & the Federal Reserve
And Guides and Knowledge for your Intellectual Journey:
Money and How it Works
Money & Banking
i dont know if she is asking that. I think she is thinking some kind of gresham's law of fiat currency.
The fractional reserve banking protection (the central bank) helps the wealthier. Also, as moneybecomes cheaper those with more of it can buy more of as the money supply under a fiat system is potentially infinite.
grant.w.underwood:I think she is thinking some kind of gresham's law of fiat currency.
That's like asking about "some kind of aerodynamics law of air".
well she probably read something along the lines how the wealthy say wealthy in our society. Like wealthy suppressing the poor type of thing. maybe i misconstrued her meaning, cheap money distributes back to the wealthy i.e. money flows to the wealthy even without banking or money is distributed by the banks.
grant.w.underwood:well she probably read something along the lines how the wealthy say wealthy in our society. Like wealthy suppressing the poor type of thing. maybe i misconstrued her meaning, cheap money distributes back to the wealthy i.e. money flows to the wealthy even without banking or money is distributed by the banks.
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jpzama:Can anyone point to a study/article on how cheap money central bank monetary policy redistirbutes to the already-wealthy and powerful?
?
Maybe you didn't bother to read the two-sentence OP?
What's more, I don't see what your explanation here has to do with "some kind of gresham's law of fiat currency." That doesn't at all sound like what you're describing here.
hah... ummm... i didnt even see it. i even thought you inserted it because i went back and read the OP and didnt see it again. saw it the 3rd time though!
well in my defense when you string 'cheap money central bank monetary policy' together words should be skipped when reading it.. punctuation is needed or something. Ill just go back to studying...
http://wiki.mises.org/wiki/Richard_Cantillon
The Anarch is to the Anarchist what the Monarch is to the Monarchist. -Ernst Jünger
grant.w.underwood: hah... ummm... i didnt even see it. i even thought you inserted it because i went back and read the OP and didnt see it again. saw it the 3rd time though! well in my defense when you string 'cheap money central bank monetary policy' together words should be skipped when reading it.. punctuation is needed or something. Ill just go back to studying...
check out credit expansion in audios or books here on mises.basically its wealth from consumers going to depters owners of businesses etc are often big depters hence the wealth distribution. while if you solely consume some of your money value is eatin away by inflation caused by an increased money supply .with out credit expansion consumers would have a gradual deflation as productivity rises in proportion to the money supply.the reality is more complex than Ive just stated.if i receive new credit and use it to increase production by buying a new tractor is it still inflationary ect.how are people in diffrent areas of the economy during boom bust cycles effected.