THE 100-PERCENT SOLUTION FOR MONEY IN EUROPE - FISHER,IRVING, PEEL,ROBERT AND THE POSSIBLE CONSEQUENCES

Autor(en): NELDNER, M
Stichwörter: Social Sciences - Other Topics; Social Sciences, Interdisciplinary
Erscheinungsdatum: 1991
Herausgeber: VANDENHOECK & RUPRECHT
Journal: JAHRBUCH FUR SOZIALWISSENSCHAFT
Volumen: 42
Ausgabe: 3
Startseite: 278
Seitenende: 289
Zusammenfassung: 
There is widespread agreement-especially among economists of the liberal creed - that the future European Central Bank should pursue a policy of price level stability. In order to facilitate a truly effective monetary control, authors like Ludwig von Mises, Henry Simons, Irving Fisher, and Milton Friedman have proposed to raise legal reserve requirements on demand and other banking deposits up to a maximum of 100%. But historical experience, most notably the development of deposit banking in England after Peel's Banking Act of 1844, has shown that tight restrictions on traditional banking will strongly encourage the emergence of financial innovations, thus leading into an endless cycle of abuse, remedy, and evasion. Some advocates of the 100%-plan, though, seem to rely on what they call a necessary proportionality between money and (non-regulated) money substitutes. Empirical evidence for the West-German economy, however, indicates that such a proportionality does not exist.
ISSN: 00752770

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