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bank failures

Essay specific features

 

Issue:

Business

 

Written by:

Laura J

 

Date added:

February 23, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

5 / 1204

 

Was viewed:

3646 times

 

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Essay content:

How can we reconcile these apparently contradictory facts? If banks can create, and multiply, money, how can they fail? Could your business fail if what you made was, literally, money, or what people took for money? The qualifier is important. It is what people assume about money that makes modern banking possible...
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It is what people assume about money that makes modern banking possible. The Federal Reserve itself points out that it is the people's confidence that make paper devices serve for money. Belief (i.e., "credit") is what keeps the system going. Psychology is everything. If modern money is an illusion, then bank failures are an important means of reinforcing that illusion...
displayed 300 characters

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