News
Bloomberg | IMF Urges Stronger Yuan to Protect World From ‘Shocks’ in China’s Growth
Currency appreciation combined with reforms to rebalance the Chinese economy “would yield substantial benefits,” the fund said in a statement late yesterday in Washington. A “major disruption in China’s so-far steady growth would have material adverse consequences,” IMF directors said.
Econ Comments
Barron's | The Fed's Risky Business
Why Uncle Sam doesn't want you to know about this government gamble.
Minyanville | Fractional Reserve Banking is Not the Problem
The trouble comes from "rolling" one's liabilities, or borrowing short to lend long.
Minyanville | Brazil Interest Rate Up, Increased Foreign Investment Expected
The country's central bank has raised its benchmark rate to 12.5%, the fifth rise in 2011, as it attempts to curb inflation and prevent its economy overheating.
Blogs
Daily Capitalist | Fractional Reserve is Not the Problem
There is a common misconception that via Fractional Reserve Banking, banks lend out more money than they have. But the very definition of fractional reserve banking is that the banks lend out less than their deposits, though they keep less than 100% of their deposits on “reserve”. This misconception comes from the failure to distinguish between money and credit. This is particularly easy to do today because our perverse fiat system has banished money altogether. Gold and silver have no official role. Everything that remains is credit.
