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About Economics of Money and Banking
1. Monetary systems are naturally hierarchical, with different instruments serving different functions in the hierarchy. 2. Under a gold standard, gold served as the ultimate international money, with currencies acting as promises to pay gold. Bank deposits were promises to pay currency, and securities were promises to pay over time, further removed from gold. 3. The credibility of promises to pay depended on the level in the hierarchy, with reserves of higher instruments enhancing credibility of lower instruments' promises to pay.
Detailed Information
| Author: | ['Denisse Garza'] |
|---|---|
| Publication Year: | 2015 |
| Pages: | 196 |
| Language: | English |
| Format: | |
| Price: | FREE |
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