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The reverse of Gresham's law, that good money drives out bad money whenever the bad money becomes nearly worthless, has been named "Thiers' law" by economist Peter Bernholz in honor of French politician and historian Adolphe Thiers. [26] "Thiers' Law will only operate later [in the inflation] when the increase of the new flexible exchange rate ...
Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. [1]
The Keynesian system can thus be represented by three equations in three variables as shown below, roughly following Hicks. Three analogous equations can be given for classical economics. As presented below they are in forms given by Keynes himself (the practice of writing r as an argument to V derives from his Treatise on money [23]).
Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". [1] Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning ...
When insufficient reserves are in the system, the central bank buys government bonds from the private sector, adding reserves to the banking system. The central bank buys bonds by simply creating money – it is not financed in any way. [52] It is a net injection of reserves into the banking system.
As a result, money can lead to the creation of a de facto aristocracy of the affluent. The converse is that egalitarian tendencies typically reject the money system. The objective nature of money ultimately arises from the division of labor, in which the product is divorced from the worker's personality and work is treated as a commodity ...
An extreme version of single-tier banking system is the monobank system (a term coined by economist George Garvy [1]: 869 ) in which a single institution centralizes all financial intermediation. The alternative to a single-tier system is a two-tier banking system , in which the central bank is singled out and entrusted with monetary policy ...
This is an accepted version of this page This is the latest accepted revision, reviewed on 17 December 2024. Economic system based on private ownership This article is about an economic system. For other uses, see Capitalism (disambiguation). "Capitalist" redirects here. For other uses, see Capitalist (disambiguation). Part of a series on Capitalism Concepts Austerity Business Business cycle ...