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The Age Of Debt Bubbles
The Age of Debt Bubbles is a book on monetary policy proposing that money creation through fractional-reserve banking makes the monetary system debt-based. The book argues that economic bubbles, higher unemployment, recessions, and depressions are caused by central banks relying on inverted yield curves and tight monetary policy. See also * Credit theory of money * Endogenous money * Narrow money and Broad money * Money multiplier * Monetary sovereignty * The End of Alchemy - Mervyn King book depicting money creation as a financial form of alchemy Alchemy (from the Arabic word , ) is an ancient branch of natural philosophy, a philosophical and protoscientific tradition that was historically practised in China, India, the Muslim world, and Europe. In its Western form, alchemy is first ... References {{reflist 2024 non-fiction books Books about monetary policy ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Roger Köppel
Roger Jürg Köppel (born 21 March 1965) is a Swiss journalist, entrepreneur, publicist and conservative politician, who served as a member of the National Council for the Swiss People's Party from 2015 to 2023. He is the editor-in-chief and publisher of ''Die Weltwoche'', a Swiss weekly magazine. He previously worked as editor-in-chief for Die Welt from 2004 to 2006. Early life and education Köppel was born 21 March 1965 in Zürich, Switzerland to Robert Köppel, a general contractor, and Margrit Köppel (née Zumkehr), a secretary. His parents were Protestant and Catholic and died during his teens. He had one older half-brother with whom he stayed after 1971. In 1983, he graduated from Kantonsschule Zürcher Unterland. He then studied in the University of Zurich's Department of Political Philosophy and Economic History. He completed his Licentiate in 1995. His thesis on Carl Schmitt, ''Autorität und Mythos: Carl Schmitt und die Wiederverzauberung staatlicher Gewalt (1916� ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inverted Yield Curve
In finance, an inverted yield curve is a yield curve in which short-term debt instruments (typically bonds) have a greater yield than longer term bonds. An inverted yield curve is an unusual phenomenon; bonds with shorter maturities generally provide lower yields than longer term bonds. To determine whether the yield curve is inverted, it is a common practice to compare the yield on the 10-year U.S. Treasury bond to either a 2-year Treasury Note, Treasury note or a 3-month Treasury bill. If the 10-year yield is less than the 2-year or 3-month yield, the curve is inverted. History The term "inverted yield curve" was coined by the Canadian economist Campbell Harvey in his 1986 PhD in management, PhD thesis at the University of Chicago. Causes and significance There are several explanations of why the yield curve becomes inverted. The "expectations theory" holds that long-term rates depicted in the yield curve are a reflection of expected future short-term rates, which in turn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alchemy
Alchemy (from the Arabic word , ) is an ancient branch of natural philosophy, a philosophical and protoscientific tradition that was historically practised in China, India, the Muslim world, and Europe. In its Western form, alchemy is first attested in a number of pseudepigraphical texts written in Greco-Roman Egypt during the first few centuries AD.. Greek-speaking alchemists often referred to their craft as "the Art" (τέχνη) or "Knowledge" (ἐπιστήμη), and it was often characterised as mystic (μυστική), sacred (ἱɛρά), or divine (θɛíα). Alchemists attempted to purify, mature, and perfect certain materials. Common aims were chrysopoeia, the transmutation of " base metals" (e.g., lead) into "noble metals" (particularly gold); the creation of an elixir of immortality; and the creation of panaceas able to cure any disease. The perfection of the human body and soul was thought to result from the alchemical ''magnum opus'' ("Great Work"). The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mervyn King, Baron King Of Lothbury
Mervyn Allister King, Baron King of Lothbury, (born 30 March 1948), is a British economist and public servant, who was Governor of the Bank of England from 2003 to 2013. Emeritus Professor of the London School of Economics and Chairman of the Philharmonia since 2020, Lord King serves as President of Marylebone Cricket Club for 2024/25. Born in Buckinghamshire, King was educated at Wolverhampton Grammar School, Staffordshire, before going up to read economics at King's College, Cambridge, and Harvard University. Elected a Fellow of St John's College, Cambridge, working as a researcher on the Cambridge Growth Project he then taught at the University of Birmingham, Harvard and MIT, before becoming a Professor of economics at the London School of Economics. He joined the Bank of England in 1990 as a non-executive director, and became the chief economist in 1991. In 1998, he was promoted deputy governor of the Bank and a member of the Group of Thirty. King was appointed as G ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The End Of Alchemy
The End of Alchemy is a book written by Mervyn King, the former Bank of England Governor from 2003-2013, including during the 2008 financial crisis. The book focuses on the history, flaws, and future of money, banking, and financial systems. Alchemy is referring to the money creation process in which banks 'manufacture' the new money supply as debt in the debt-based monetary system, where banks create margin for themselves and invest it as debt, such as mortgages, loans, bonds, treasuries, and other debt-based financial instruments. The leverage created by banks creates the economic bubbles that the Central banks have to pop with deflationary monetary policy that typically causes unemployment to rise. The Gold Standard and the Great Depression In Chapter 3, titled ' ''The Good, the Bad, and the Ugly'' ' King explains how in the 1920s countries tried to reinstate the Gold standard at pre-World War I parities causing deflationary pressures and the Great Contraction through ti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Sovereignty
Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency, broadly defined, by exercise of the following powers: * Legal tender – the exclusive authority to designate the legal tender forms of payment. * Issuance and retirement – the exclusive authority to control the issuance and retirement of the legal tender."The Legal Aspect of Money" by F.A. Mann, 5th edition, Oxford, 1992, pp. 460-78 Incidence of monetary sovereignty Currently, nations such as the USA and Japan, which have autonomous central banks exercise monetary sovereignty. On the other hand, the European Union nations within the Eurozone, have ceded much of their monetary sovereignty to the European Central Bank The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International .... Referen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Money Multiplier
In monetary economics, the money multiplier is the ratio of the money supply to the monetary base (i.e. central bank money). In some simplified expositions, the monetary multiplier is presented as simply the reciprocal of the reserve ratio, if any, required by the central bank. More generally, the multiplier will depend on the preferences of households, the legal regulation and the business policies of commercial banks - factors which the central bank can influence, but not control completely. Because the money multiplier theory offers a potential explanation of the ways in which the central bank can control the total money supply, it is relevant when considering monetary policy strategies that target the money supply. Historically, some central banks have tried to conduct monetary policy by targeting the money supply and its growth rate, particularly in the 1970s and 1980s. The results were not considered satisfactory, however, and starting in the early 1990s, most central b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Broad Money
In economics, broad money is a measure of the amount of money, or money supply, in a national economy including both highly liquid "narrow money" and less liquid forms. The European Central Bank, the OECD and the Bank of England all have their own different definitions of broad money.Definition of M0, M1, M2, M3, M4 , '''' Lexicon Definition The considers all monetary aggregates from M2 upwards to be part of broad money."Data on the broad monetary aggregate M2 in the US has been subj ...[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Endogenous Money
Endogenous money is an economy’s supply of money that is determined endogenously—that is, as a result of the interactions of other economic variables, rather than exogenously (autonomously) by an external authority such as a central bank. The theoretical basis of this position is that money comes into existence through the requirements of the real economy and that the banking system reserves expand or contract as needed to accommodate loan demand at prevailing interest rates. Central banks implement policy primarily through controlling short-term interest rates. The money supply then adapts to the changes in demand for reserves and credit caused by the interest rate change. The supply curve shifts to the right when financial intermediaries issue new substitutes for money, reacting to profit opportunities during the cycle. History Theories of endogenous money date to the 19th century, with the work of Knut Wicksell, and later Joseph Schumpeter. Early versions of this theor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Theory Of Money
Credit theories of money, also called debt theories of money, are monetary economic theories concerning the relationship between credit and money. Proponents of these theories, such as Alfred Mitchell-Innes, sometimes emphasize that money and credit/debt are the same thing, seen from different points of view. Proponents assert that the essential nature of money is credit (debt), at least in eras where money is not backed by a commodity such as gold. Two common strands of thought within these theories are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of debt. Some proponents of credit theories of money argue that money is best understood as debt even in systems often understood as using commodity money. Others hold that money equates to credit only in a system based on fiat money, where they argue that all forms of money including cash can be considered as forms of credit money. The first f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quantitative Tightening
Quantitative tightening (QT) is a contractionary monetary policy tool applied by central banks to decrease the amount of liquidity or money supply in the economy. A central bank implements quantitative tightening by reducing the financial assets it holds on its balance sheet by selling them into the financial markets, which decreases asset prices and raises interest rates. QT is the reverse of quantitative easing (or QE), where the central bank prints money and uses it to buy assets in order to raise asset prices and stimulate the economy. QT is rarely used by central banks, and has only been employed after prolonged periods of Greenspan put-type stimulus, where the creation of too much central banking liquidity has led to a risk of uncontrolled inflation (e.g. 2008, 2018 and 2022). Background Quantitative easing was massively applied by leading central banks to counter the Great Recession that started in 2008. The prime rates were decreased to zero; some rates later went ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central Bank
A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Many central banks also have supervisory or regulatory powers to ensure the stability of commercial banks in their jurisdiction, to prevent bank runs, and, in some cases, to enforce policies on financial consumer protection, and against bank fraud, money laundering, or terrorism financing. Central banks play a crucial role in macroeconomic forecasting, which is essential for guiding monetary policy decisions, especially during times of economic turbulence. Central banks in most developed nations are usually set up to be institutionally independent from political interference, even though governments typically have governance rights over them, legislative bodies exercise scrutiny, and central banks frequently do show resp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
