Sentences with phrase «fractional reserve banking caused»

So, fractional reserve banking caused financial panics and boom - bust economic cycles in the US prior to the creation of the Fed, but crises and recessions in the pre-Fed era were relatively short and the economy tended to recover far more quickly.

Not exact matches

The bottom line is that it is not fractional reserve banking per se that is the cause of inflationary increases to the money supply due to the money multiplier process but rather the ability of central banks to override market signals, thanks to their monopoly status, and add reserves to the banking system at their discretion and independently of the public's preferences.

This Act would stabilize the economy and end the boom - bust economic cycles caused by fractional reserve banking.

Besides the timestamp, the message alludes to the instability caused by fractional - reserve banking in the wake of the 2008 financial crisis.