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I honestly could not believe my eyes when I read his post. I started to challenge him, and the converstation grew even more ridiculous. I have no idea how to respond anymore. I know what I want to say, I just can't say it right. Here is the conversation, with me and a poster who I will called "Keynes...
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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...
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I just want to check if my understanding of the reserve requirement is accurate. When the Fed buys an asset from banks or government debt it creates however much money in the form of reserves. So the money supply should be potentially inflated by 10 times the Fed's purchase because of fractional...
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this link http://hallofrecord.blogspot.com/2007/11/does-federal-reserve-cause-inflation.html contains this statement "The question on the table was whether the Federal Reserve caused inflation. I responded - " The Fed doesn't cause inflation or deflation, but the Fed certainly mucks up...
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i was using the term monetary base to mean roughly.... "M0 -- currency (notes and coins) in circulation and in bank vaults, plus reserves which commercial banks hold in their accounts with the central bank (minimum reserves and excess reserves). M0 is usually called the monetary base - the base...
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another forum thread asks this very question but didnt get into much depth (plain term descriptions) of the federal reserves inflationary mechanisms. this link http://mises.org/Community/forums/p/2989/109799.aspx#109799 lists, which i assume are true ( i am not sure), three ways of federal reserve inflation...
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"I know that for every $100 of deposits a bank can lend $900 on a 10% reserve ratio system," per this phrasing seems confusing to me. it would seem that it would be more correct to say that for every $100 of reserves in a bank the bank has lent out $900 of deposits.... based on a 10% reserve...
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I took and passed a basic macroeconomic class in college that dealt with fractional reserve banking, but I forgot those falsehoods and errors and replaced them with Austrian Economics. I am confused with fractional reserves and how it increases the money supply. If reserve requirements are 20% and every...
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Normal 0 false false false EN-AU X-NONE X-NONE MicrosoftInternetExplorer4 Can anyone provide a citation that supports the statement by Hans F. Semholz posted at http://mises.org/story/2414# that Friedman “calls for the issue of government money in the form of non-interest bearing obligations that...
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As Frank Shostak predicted in his podcast last week or so on mises.org, the banks are now holding excess reserves. The bailout package authorizes the Fed to start paying interest on bank reserves, and they have announced a plan to do so. If you look at the numbers, the banks lately have had around $40...