Commodity Trade Mantra

Posts Tagged ‘Credit Money’

The Concept Of Money And The Money Illusion

Guess what. Your money at the bank is not your money. A bank deposit is a loan to the bank, which should justify the fact banks only have a fraction of outstanding liabilities (receipts) in reserve. Let us examine this modern day practice of banking and the creation of what I call illusionary money. Simplified example: there is only book entry money, nowadays digital.

Fiat Money and Business Cycles in Emerging Markets

The role money plays in international trade is not different, nor is it less a medium of exchange in foreign trade than it is in domestic trade. A surplus of money flows into a country only when its residents are more eager to increase their cash holdings than are the foreigners.

Money Is Only Gold, And Nothing Else Could Be Money!

Gold has been considered money for millennia. There are several reasons why gold became money, but for brevity’s sake we can say that gold became money because money is always the most marketable good. Marketability refers to how readily people will accept something in trade.

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