Re:Inequality, Interest Rates, Aging, and the Role of Centra...
by JumpCrisscross on Friday December 30, 2022 @01:31PM
(#34188175)
> era of free banking in the US, banks issued their own currency
The free banking era illustrates the problem. Rates are endogenous to the money supply. That circularity promotes a hyper-volatile credit cycle. There is no natural counter-balance we’ve discovered to that tendency. (Apart from ruinous boom-and-bust cycles.)
The free banking era illustrates the problem. Rates are endogenous to the money supply. That circularity promotes a hyper-volatile credit cycle. There is no natural counter-balance we’ve discovered to that tendency. (Apart from ruinous boom-and-bust cycles.)