-
So fractional reserve banking is simply a mix of full reserve banking and savings and loans banks. Banks keep some reserves say 10% and loan out the other 90%, then the money loaned is spent within the economy, redeposited and the process repeats. In full-reserve banking the deposits are simply stored...
-
Please allow me to get back on the topic. "(Selgin: ) I don't think you can have read, for example, my article "In Defense of Bank Suspension," whioch addresses the question of how nt banks can contractually handle mass runs. But in any event, why suppose that a banking system isn't...
-
Could this be a step in the right direction? We are assuming a fiat monetary system here. How would this effect the system if it were implemented today?
-
If you default on debt why does the money supply contract? If I borrow $100 from the central bank, then spend it into the economy and then tell the central bank I default, I can't pay the money back, than that is $100 extra in the system that will never be taken out. Correct? If I had paid the money...
-
Was Rothbard opposed to fractional reserve banking in its entirety or is he only against fractional reserve banking by a state central bank? There's a lecture by Jeff Hummel entitled "Why fractional reserve banking is more libertarian than the gold standard". Is the disagreement just with...
-
OK, so the title is somewhat of an unfair attention grabber, pardon me on that. This is in relation to the video here http://www.youtube.com/watch?v=dZf3Qye0BtQ in which Robert Murphy talks about how the balance in the checking account the banks have at the FED has increased from $45 billion to $829...
-
Ever since the begginning of the latest school year I have really tryed to start getting into politics and what not. Economics is the hardest concept for me to understand yet. Last year I took a Civics and Economics class which didn't really teach me a thing. I've been reading this book "End...
-
I've spent considerable time and effort to try and understand precisely how banks can currently create money. One issue that arises--if banks have such a good deal, why doesn't everyone with a few million dollars to invest go out and start one? I would appreciate it if those with intimate knowledge...
-
I just finished the lecture course by Peter Klein and Joe Salerno, the Causal-Realist Approach to Economics, and the last lecture on banking and the business cycle was very fascinating. However, I was confused when Mr. Salerno said that the costs go up in the capital goods industry. Firstly, bank reserves...
-
I just read a section of a report issued by Ron Paul on the gold standard, in which he made the point that interest rates during the 1800s were between 3 and 5 percent, while the developed world was on the gold standard, and that this was a realistic number for rates to fall to. However, if 100%-reserve...