The ABCs of Political Economy: A Modern Approach by Robin Hahnel
Author:Robin Hahnel [Hahnel, Robin]
Language: eng
Format: epub, pdf
ISBN: 9781783710997
Publisher: Pluto Press
Published: 2013-11-11T00:00:00+00:00
7 Money, Banks, and Finance
A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.
Robert Frost
It is ironic that money and banks top the list of economic subjects that most baffle and bore students. Money is just a clever invention to save time, and bankers, contrary to their stodgy reputations, substitute bigamy for proper marriages between borrowers and lenders – with predictably disastrous consequences when both wives press their legal claims. Once finance is understood, the Savings and Loan crisis of the 1980s, international financial crises of the 1990s and early twenty-first century, and the logic of monetary policy all fall quickly into place.
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