by Matthew Bransgrove | Oct 9, 2015 | Money
Recessions are good Recessions are necessary to enable businesses and individuals to reconnect with reality and to address inefficiencies and misallocation of capital. Although many people suffer pain in the process, the net result is overwhelmingly beneficial. It is...
by Matthew Bransgrove | Oct 9, 2015 | Money
Fractional reserve banking Centuries ago merchants would deposit their gold coins for safekeeping with a goldsmith. The goldsmith would give the depositor a note which could be used to redeem the gold. Soon merchants found it more convenient to exchange the notes...
by Matthew Bransgrove | Oct 8, 2015 | Money
Exchange rates reflect national prosperity. If a country is prosperous it will create surplus goods sought by the rest of the world. The rest of the world will need to purchase domestic currency to pay for those goods, and that will cause the currency to rise in...
by Matthew Bransgrove | Oct 8, 2015 | Money
The wealth of nations As time goes on, mankind gets richer. This extra wealth is a result of advances in technology and the effects of cumulative investment. These increase the amount of goods and services that can be produced with the same human labor. Whereas before...
by Matthew Bransgrove | Oct 7, 2015 | Money
But Enoch was right. He had made the two intellectual leaps in economic policy which Keith Joseph and I would only make some years later. First, he had grasped that it was not the unions which caused inflation by pushing up wages, but rather the Government which did...
