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Full Reserve Banking
Full-reserve banking (also known as 100% reserve banking, or sovereign money system) is a system of banking where banks do not lend demand deposits and instead only lend from time deposits. It differs from fractional-reserve banking, in which banks may lend funds on deposit, while fully reserved banks would be required to keep the full amount of each customer's demand deposits in cash, available for immediate withdrawal. Monetary reforms that included full-reserve banking have been proposed in the past, notably in 1935 by a group of economists, including Irving Fisher, under the so-called "Chicago plan" as a response to the Great Depression. Currently, no country in the world requires full-reserve banking across primary credit institutions, although Iceland's legislature considered it in 2015 after the 2008–2011 Icelandic financial crisis. In a 2018 Swiss ballot initiative, 75% of voters voted against the Sovereign Money Initiative which had full reserve banking as a pro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand Deposit
Demand deposits or checkbook money are funds held in demand accounts in commercial banks. These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Simply put, these are deposits in the bank that can be withdrawn on demand, without any prior notice. History In the United States, demand deposits arose following the 1865 tax of 10% on the issuance of state bank notes; see history of banking in the USA. In the U.S., demand deposits only refer to funds held in checking accounts (or cheque offering accounts) other than NOW accounts; however, in a 1970s and 1980s response to the 1933 promulgation of Regulation Q in the U.S., demand deposits in some cases came to allow easier access to funds from other types of accounts (e.g. savings accounts and money market accounts). For the historical basis of the distinction between demand deposits and NOW accounts in the U.S., see Negotiable order of withdrawal account. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Kay (economist)
Sir John Anderson Kay, (born 1948) is a British economist. He was the first dean of Oxford’s Said Business School and has held chairs at the London School of Economics, the University of Oxford, and London Business School. He has been a fellow of St John's College, Oxford, since 1970. Early life and education Born in Edinburgh, Kay was educated at the Royal High School, Edinburgh University, and Nuffield College, Oxford. He lectured in economics at Oxford from 1971 to 1978. Later career In 1979, Kay became Research Director and the Director of the independent think tank, the Institute for Fiscal Studies. In 1986 he became a professor at the London Business School and founded London Economics, a consultancy firm. He was the first director of Oxford's Said Business School from 1997 to 1999, and has written at some length as to why he chose to resign after only two years. He has served as a director of Halifax plc and of several investment companies. In 2003, Kay ad ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reserve Requirement
Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets. This minimum amount, commonly referred to as the Bank reserves, commercial bank's reserve, is generally determined by the central bank on the basis of a specified proportion of Deposit account, deposit liabilities of the bank. This rate is commonly referred to as the cash reserve ratio or shortened as reserve ratio. Though the definitions vary, the commercial bank's reserves normally consist of currency, cash held by the bank and stored physically in the bank vault (vault cash), plus the amount of the bank's balance in that bank's account with the central bank. A bank is at liberty to hold in reserve sums above this minimum requirement, commonly referred to as ''excess reserves''. In some areas such as the euro area and the UK, tightening of reserve requirements in the home country is found to be associated with higher lending by foreign branches. Fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Zac Goldsmith
Frank Zacharias Robin Goldsmith, Baron Goldsmith of Richmond Park, (born 20 January 1975) is a British politician, life peer and journalist who served as Minister of State for Overseas Territories, Commonwealth, Energy, Climate and Environment from September 2022 to June 2023. A member of the Conservative Party (UK), Conservative Party, he was its candidate at the 2016 London mayoral election and was Member of Parliament (United Kingdom), Member of Parliament (MP) for Richmond Park (UK Parliament constituency), Richmond Park from 2010 United Kingdom general election, 2010 to 2016 Richmond Park by-election, 2016 and 2017 United Kingdom general election, 2017 to 2019 United Kingdom general election, 2019. Ideologically characterised as having Liberalism, liberal and libertarian views, he is known for his support for environmentalism and Localism (politics), localism. Born in London into the Goldschmidt family, the son of billionaire businessman and financier Sir James Goldsmith, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Laurence Kotlikoff
Laurence Jacob Kotlikoff (born January 30, 1951) is an American economist who has served as a professor of economics at Boston University since 1984.https://kotlikoff.net/wp-content/uploads/2024/02/Vita-2-21-24-Laurence-Kotlikoff.pdf A specialist in macroeconomics and public finance, he has contributed to a range of fields, including climate change and carbon taxation, the global macroeconomic transition and the future of economic power, inequality, fiscal progressivity, economic guides to personal financial behavior, banking reform, marginal taxation and labor supply, healthcare reform, and social security. He is the author of over 20 books, and his scholarly articles have been published in a range of journals, including the ''American Economic Review'', the ''Quarterly Journal of Economics'', and the ''Journal of Political Economy''. Born in 1951, Kotlikoff received a BA in economics from the University of Pennsylvania in 1973, and a PhD in economics from Harvard Unive ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
James Tobin
James Tobin (March 5, 1918 – March 11, 2002) was an American economist who served on the Council of Economic Advisers and consulted with the Board of Governors of the Federal Reserve System, and taught at Harvard University, Harvard and Yale University, Yale Universities. He contributed to the development of key ideas in the Keynesian economics of his generation and advocated government intervention in particular to stabilize output and avoid recessions. His academic work included pioneering contributions to the study of investment (macroeconomics), investment, monetary and fiscal policy and financial markets. He also proposed an econometric model for Censoring (statistics), censored dependent variables, the well-known tobit model. Along with fellow Neo-Keynesian economics, neo-Keynesian economist James Meade in 1977, Tobin proposed Nominal income target, nominal GDP targeting as a Discretionary policy, monetary policy rule in 1980. Tobin received the Nobel Memorial Prize in Econ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
A Program For Monetary Stability
A Program for Monetary Stability is a book by the US economist Milton Friedman. It has been published by Fordham University Press in 1960 with consecutive re-prints appearing in 1961, 1963, 1965, 1969, 1970, 1975, and 1980.Milton Friedman, ''A Program for Monetary Stability''. New York: Fordham University Press, 1960. In the Prefatory Note Friedman states that the book is a revised and expanded version of the third of the Moorhouse I. X. Millar Lecture Series, which he gave at Fordham University in October 1959. At the same time, he claims that the book has resulted from the joint research with Anna Schwartz under the NBER project. Contents The book comprises four chapters: # ''The Background of Monetary Policy'': In this chapter, Friedman first explains why government should intervene in monetary and banking questions. Although he proclaims himself a liberal, he thinks there are good reasons for not leaving monetary issues entirely to the market forces because with fiduciary mo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Milton Friedman
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy. With George Stigler, Friedman was among the intellectual leaders of the Chicago school of economics, a neoclassical school of economic thought associated with the faculty at the University of Chicago that rejected Keynesianism in favor of monetarism before shifting their focus to new classical macroeconomics in the mid-1970s. Several students, young professors and academics who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, and Robert Lucas Jr. Friedman's challenges to what he called "naive Keynesian theory" began with his interpretation of consumption, which tracks how consumers spend. He introduced a theory w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Maurice Allais
Maurice Félix Charles Allais (31 May 19119 October 2010) was a French physicist and economist, the 1988 winner of the Nobel Memorial Prize in Economic Sciences "for his pioneering contributions to the theory of markets and efficient utilization of resources", along with John Hicks (Value and Capital, 1939) and Paul Samuelson (The Foundations of Economic Analysis, 1947), to neoclassical synthesis. They formalize the self-regulation of markets, which Keynes refuted but reiterated some of Allais's ideas. Born in Paris, France, Allais attended the Lycée Lakanal, graduated from the École Polytechnique in Paris and studied at the École nationale supérieure des mines de Paris. His academic and other posts have included being Professor of Economics at the École Nationale Supérieure des Mines de Paris (since 1944) and Director of its Economic Analysis Centre (since 1946). In 1949, he received the title of doctor-engineer from the University of Paris, Faculty of Science. He also ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Cycle
Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for the welfare of the general population, government institutions, and private sector firms. There are many definitions of a business cycle. The simplest defines recessions as two consecutive quarters of negative GDP growth. More satisfactory classifications are provided by, first including more economic indicators and second by looking for more data patterns than the two quarter definition. In the United States, the National Bureau of Economic Research oversees a Business Cycle Dating Committee that defines a recession as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." Business cycles are usually thought of as medium-term ev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chicago Plan
The Chicago Plan was introduced by University of Chicago economists in 1933 as a comprehensive plan to reform the monetary and banking system of the United States. The Great Depression had been caused in part by excessive private bank lending, so the plan proposed to eliminate the private bank money creation method of fractional reserve lending. Centralized money creation would prevent booms and busts in the money supply. Multiple bills in the United States Congress are related to the Chicago Plan. Following the Great Recession, the plan was updated in a 2012 International Monetary Fund working paper. Background Roaring Twenties The Roaring Twenties, a period of economic growth in the United States, was marked by speculation and excessive lending. Under laissez-faire economic policies, loose lending practices fueled a Economic bubble, bubble. In this environment, stock market speculators used Leverage (finance), leverage to buy stocks on Margin (finance), margin. Consu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Keynesianism
Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongly influences Output (economics), economic output and inflation. In the Keynesian view, aggregate demand does not necessarily equal the aggregate supply, productive capacity of the economy. It is influenced by a host of factors that sometimes behave erratically and impact production, employment, and inflation. Keynesian economists generally argue that aggregate demand is volatile and unstable and that, consequently, a market economy often experiences inefficient macroeconomic outcomes, including economic recession, recessions when demand is too low and inflation when demand is too high. Further, they argue that these economic fluctuations can be mitigated by economic policy responses coordinated between a government and their central bank. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
