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Debate House Prices


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Prohibit the creation of money?

reduceditem
reduceditem Posts: 3,057 Forumite
in Debate House Prices & the Economy
I think I'm up for it. Anyone else?
«13

Comments

  • purch
    purch Posts: 9,865 Forumite
    I think I'm up for it. Anyone else?

    No.

    Sounds like a very silly idea.

    Money Supply would contract at an alarming rate (assuming we ever get back to any economic growth)
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • reduceditem
    reduceditem Posts: 3,057 Forumite
    purch wrote: »
    No.

    Sounds like a very silly idea.

    As silly as allowing banks to create it?
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You mean retail banks rather than central banks, then?

    Can you suggest a better system?
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • purch
    purch Posts: 9,865 Forumite
    As silly as allowing banks to create it?

    Waaay sillier !!!
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • reduceditem
    reduceditem Posts: 3,057 Forumite
    Masomnia wrote: »

    Can you suggest a better system?

    Better for who? Better for what?

    I am not convinced that banks should be allowed to create money using debt.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    reduceditem wrote: »
    Better for who? Better for what?

    I am not convinced that banks should be allowed to create money using debt.

    Why do you think that and what would you replace it with, please?
  • purch
    purch Posts: 9,865 Forumite
    what would you replace it with,

    Massive Deflation ?? :confused:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • reduceditem
    reduceditem Posts: 3,057 Forumite
    Generali wrote: »
    Why do you think that and what would you replace it with, please?

    I think it because I don't see that as the job of a bank. Why does it need replacing? I'm suggesting, for the sake of argument, that banks be prohibited from using debt to create money....I'm not suggesting an alternative because I'm not convinced we need one.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    reduceditem wrote: »
    I think it because I don't see that as the job of a bank. Why does it need replacing? I'm suggesting, for the sake of argument, that banks be prohibited from using debt to create money....I'm not suggesting an alternative because I'm not convinced we need one.

    If your going to have a monetary system then someone needs to create the money, be it a bloke turning gold into coins or a system of fractional reserve banking.

    Not having money at all increases transactional costs dramatically and makes trade much harder.
  • reduceditem
    reduceditem Posts: 3,057 Forumite
    Generali wrote: »
    If your going to have a monetary system then someone needs to create the money, be it a bloke turning gold into coins or a system of fractional reserve banking.

    Not having money at all increases transactional costs dramatically and makes trade much harder.

    I know that. I have not said that we should have no money at all.
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