HIST BC 3116y Lecture Notes - Lecture 25: Seigniorage, Currency Substitution, Freddie Mac
1 Nov 2016
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History of money lecture 25 (20 april 2016) End of bretton woods (see previous lecture: e(cid:374)ded i(cid:374) (cid:1005)(cid:1013)(cid:1011)(cid:1004)"s, oscillation between a preoccupation with reasonably managed money (by people) and the issue of who these people managing money are managing it for. Favor their own: monetarization (1979 -1981) Expectation of inflation that becomes self-fulfilling and escalates. People start writing it into their loan documents. Reagan created an artificial crisis and it worked: unprepared to deal with the 2008 crisis. Ad hoc solutions (president, secretary, federal reserve, etc. ) Thinking about money and credit is to let it be and it will fix itself. Si(cid:373)ilar ki(cid:374)d of ope(cid:374)(cid:374)ess to (cid:1006)(cid:1004)(cid:1004)(cid:1012) a(cid:374)d (cid:1005)(cid:1013)(cid:1006)(cid:1004)"s: goals of imf. To facilitate the expansion and balanced growth of international trade. To promote exchange rate stability and to avoid competitive exchange depreciation. To assist in the establishment of an international payment system. To lend to nations who are experience balance of payments problems.
