Re: Banks vs Capital Markets

[GGard97342@xxxxxx]

In a message dated 15/03/2000 15:46:26 GMT Standard Time, hliu@xxxxxxxxxxxxxx
writes:

> Subj:  Re: Banks vs Capital Markets
>  Date:    15/03/2000 15:46:26 GMT Standard Time
>  From:    hliu@xxxxxxxxxxxxxx (ÁÎ×Ó¹â Henry C.K.Liu  ¹ù¤l¥ú)
>  Sender:  owner-pkt@xxxxxxxxxxxxxxxx
>  Reply-to:    pkt@xxxxxxxxxxxxxxxx
>  To:  pkt@xxxxxxxxxxxxxxxx (POST-KEYNESIAN THOUGHT)
>
>  The gold standard made it impossible for central banks to respond to large
> increases in output with offsetting expansion of
>  the money supply.

So the commercial community invented its own currency, as it had been doing
for about 40,000 years. See the figures for the growth of bills of exchange
from 1832 to 1837 in Henry Tooke's paper of 1844. The standard teaching about
the Gold Standard is, I again declare, romantic fiction.


 >I must
>  admit, that not being academically trained as an economist, I have some
> difficulty in following the technical discussions,
>  fascinating as they are.

I am sure that if Henry Liu cannot cannot follow the discussions they are not
worth following. His contributions are magnificent. I suppose architects like
him are always conscious of the need to have firm foundations. Academically
trained economists are too fond of breaking the basic rules of science.

Geoffrey Gardiner