HIST BC 3116y Lecture Notes - Lecture 24: Excess Reserves, Stok, Monetarism
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History of money lecture 24 (18 march 2016) Partly privately owned and partly government owned. Government institution with the interest of (cid:1005)9(cid:1006)(cid:1004)"s. Stock market, real estate, etc. were all booming (economy as a whole) Demand for more money in the economy and the frb facilitated it. 1907-8 had no lasting effect upon the economy or public. 1929 (black monday), cataclysmic stock market crash: (cid:373)ost people did(cid:374)"t ha(cid:448)e their sa(cid:448)i(cid:374)gs i(cid:374) the sto(cid:272)k (cid:373)arket, but enough people did and were devastated. 1931, 2000 runs on the bank (trigger point of bank runs. 1929-1935, 8,000 something runs on the bank: demands for goods and services went to zero. Econo(cid:373)(cid:455) throughout the earl(cid:455) (cid:1005)9(cid:1004)(cid:1004)"s (cid:449)as (cid:271)ased o(cid:374) e(cid:374)or(cid:373)ous e(cid:454)pa(cid:374)sio(cid:374) o(cid:374) the suppl(cid:455) side (industrial production: railroads, buildings, infrastructural things) (cid:1005)9(cid:1007)(cid:1004)"s (cid:449)as (cid:373)ore a(cid:271)out (cid:272)o(cid:374)su(cid:373)er goods produ(cid:272)tio(cid:374) (cid:894)refrigerators, radios, (cid:272)ars, et(cid:272). (cid:895) Fall in demand = prices are falling even more: unable to turn a profit, overwhelmed by loans.