On Mon, 6 Nov 1995 Steve.Keen@unsw.EDU.AU wrote:
> a banker is someone you go to to ask for credit because you
> believe they have a hoard of money somewhere. But they don't
> have to: the belief alone is necessary in any system where
> money is not a producible commodity. In a system where money
> is simply promissory notes (or some such) initiated by a
> bank, bankers' "hoards" could be negative, with no impact on
> the system--so long as no-one checks behing the vault.
>
> What our system of reserves and state money does is simply
> provide some control and accountability on the existence of
> bankers hoards. The function of banks can exist quite easily
> without such controls.
>
> Cheers,
> Steve Keen
fewer words, more clear, same content than my post
riccardo
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Riccardo Bellofiore e-mail: bellofio@cisi.unito.it
Department of Economics Tel: (39) -35- 277505 (direct)
University of Bergamo (39) -35- 277501 (dept.)
Piazza Rosate, 2 (39) -11- 5819619 (home)
I-24129 Bergamo Fax: (39) -35- 249975
Italy
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