"The most hated sort of moneymaking, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural use of it. For money was intended to be used in exchange, but not to increase at interest. And this term usury which means the birth of money from money, is applied to the breeding of money, because the offspring resembles the parent. Wherefore of all modes of making money this is the most unnatural." -- Aristotle (384-322 BCE)
Russian-born British economist Abba Lerner, in 1943, had advocated that the central bank could start "printing money" to match government deficit-spending "sufficient to achieve and sustain full employment."
Deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.
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At the time, improper banking activityâthe overzealous commercial bank involvement in stock market investmentâwas deemed the main culprit of the financial crash. It was believed that commercial banks took on too much risk with depositors' money.
Essentially, investment banks serve as middlemen between a company and investors when the company wants to issue stock or bonds. The investment bank assists with pricing financial instruments to maximize revenue and with navigating regulatory requirements.
In 1979, United States President Jimmy Carter appointed as Federal Reserve chief Paul Volcker, who made fighting inflation his primary objective, and who restricted the money supply (in accordance with the Friedman rule) to tame inflation in the economy. The result was a major rise in interest rates, not only in the United States; but worldwide. The "Volcker shock" continued from 1979 to the summer of 1982, decreasing inflation and increasing unemployment.[10]
Most monetarists oppose the gold standard. Friedman, for example, viewed a pure gold standard as impractical.[8] For example, whereas one of the benefits of the gold standard is that the intrinsic limitations to the growth of the money supply by the use of gold would prevent inflation, if the growth of population or increase in trade outpaces the money supply, there would be no way to counteract deflation and reduced liquidity (and any attendant recession) except for the mining of more gold.
Friedman's k-percent rule is a monetary policy rule that the money supply should be increased by the central bank by a constant percentage rate every year, irrespective of business cycles.
Irving Fisher's Warning To Margin Tradershttp://www.dark-bid.com/irving-fisher-margin-trader-warning.htmlãStocks have fallen in a week 30%, and a week ago, t...
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