Sentences with phrase «practicing fractional reserve»

And in America, you'll be hard pressed to find any chartered bank that isn't practicing fractional reserve banking.

Not exact matches

While most of his proposals — «to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort» — are now conventional practice, his critique of fractional - reserve banking still «remains outside the bounds of conventional wisdom» although a recent paper by the IMF reinvigorated his proposals.

Central banking is perhaps history's best example of government attempting to fix a problem — in this case, the instability resulting from the practice of fractional reserve banking — and making things much worse in the process.

Fractional reserve banking is the practice of keeping only a fraction of a bank's demand deposits on reserve, while lending out the rest.