Search results
Results from the WOW.Com Content Network
Under the real bills doctrine, there is only one policy role for the central bank: lending commercial banks the necessary reserves against real customer bills, which the banks offer as collateral. The term "real bills doctrine" was coined by Lloyd Mints in his 1945 book, A History of Banking Theory. The doctrine was previously known as "the ...
This theory, defended by Senator Glass's longtime advisor Henry Parker Willis, had served as a foundation for the Federal Reserve Act of 1913 and earlier US banking law. Glass and Willis argued the failure of banks to follow, and of the Federal Reserve to enforce, this theory had resulted in the "excesses" that inevitably led to the Wall Street ...
As banking regulation focusing on key factors in the financial markets, it forms one of the three components of financial law, the other two being case law and self-regulating market practices. [5] Compliance with bank regulation is ensured by bank supervision.
One of its amendments provided that, a federal reserve bank may discount any commercial, agricultural or industrial paper for liquidity purposes. It also allowed necessary advances to its member banks secured by "any sound asset" [2] that would otherwise be described as ineligible [2] by the orthodox theory to provide bank reserves.
The Banca Romana was founded by French and Belgian investors in 1833 under the jurisdiction of Pope Gregory XVI. [4] ( Other sources mention 1835) [5] After the fall of the short-lived Roman Republic in 1849, the bank was renamed Banca dello Stato Pontificio in 1850, and became the official bank of the Papal States, acquiring a monopoly of currency issue, deposit collection, and credit in the ...
Contract theory in economics began with 1991 Nobel Laureate Ronald H. Coase's 1937 article "The Nature of the Firm". Coase notes that "the longer the duration of a contract regarding the supply of goods or services due to the difficulty of forecasting, then the less likely and less appropriate it is for the buyer to specify what the other party should do."
In 1856 he published his Theory and Practice of Banking, [6] [7] in 1858 Elements of Political Economy, [8] and in 1859 A Dictionary of Political Economy. [9] In 1873 his Principles of Economical Philosophy [10] [11] appeared, and in 1889 his The Theory of Credit.
The dual use of the word "duration", as both the weighted average time until repayment and as the percentage change in price, often causes confusion. Strictly speaking, Macaulay duration is the name given to the weighted average time until cash flows are received and is measured in years. Modified duration is the name given to the price ...