Readings in Money and Banking |
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Page 178
... interest rates is frequently misunderstood : a very naive but nonetheless common view holds that inter- est is the " price " of money , so that an expansion of the quantity of money tends to lower interest rates . In fact , monetary ...
... interest rates is frequently misunderstood : a very naive but nonetheless common view holds that inter- est is the " price " of money , so that an expansion of the quantity of money tends to lower interest rates . In fact , monetary ...
Page 184
... interest but you save the $ 250 price increase by buying the car this year instead of next year . The net interest cost is only $ 150 from buying the car now ; if you were just indifferent before when it cost you $ 400 , then clearly ...
... interest but you save the $ 250 price increase by buying the car this year instead of next year . The net interest cost is only $ 150 from buying the car now ; if you were just indifferent before when it cost you $ 400 , then clearly ...
Page 188
... interest rates and borrowers will be willing to pay the higher interest rates . Money affects interest rates , therefore , because money affects both business activity and the rate of inflation . In addition to the effects discussed ...
... interest rates and borrowers will be willing to pay the higher interest rates . Money affects interest rates , therefore , because money affects both business activity and the rate of inflation . In addition to the effects discussed ...
Contents
Why Bother? | 3 |
The Theory of Money | 12 |
The Evolution of | 23 |
Copyright | |
18 other sections not shown
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assets balance bank failures bank notes Bank of England bank's bankers banking crises banking panics banking system bonds borrow branch banking capital cash central bank changes charter circulation clearinghouse commercial banks commodity money costs countries crisis currency demand deposits deposit insurance depositors discount dollar economic economists effect excess demand exchange Federal Reserve Bank Federal Reserve System fractional-reserve banking free banking funds George Selgin gold standard growth rate History income increase inflation inside money institutions interest rates investment last resort lender of last liabilities loans losses ment Milton Friedman monetary authority monetary policy money supply national banks natural rate note issue noteholders operations payments percent period price level price of gold production profits purchasing power rate of interest real output real rate redeem regulation reserve requirements restrictions rise rule securities stability theory thrifts tion trade trend United value of money velocity wages wildcat banking York