Banks & Interest

• Interest Rates and the Economy
  Interest rates have a big influence on stock markets because of three factors.
• Central Banks
  Central banks and interest rates: There is an intrinsic interest rate in any market that matches demand for credit with savings.
• How Banks Create Money
  How Banks Create Money out of Thin Air: Most money in the economy is held in the form of deposits with banks rather than in the form ...
• Future Banking Panics
  To protect ourselves from future banking panics we need to understand the underlying causes. Panics are normally precipitated by an insolvency crisis, which then escalates into a liquidity crisis as depositors rush to withdraw their funds.
• The Fed's Failed Monetary Policy
  Ben Bernanke and I have little in common, but we share the view that any form of recovery is dependent on confidence. Where we differ is in how to restore confidence.
• Wright's Model
  Negative yield curves have proved to be reliable predictors of economic recession over the past 50 years. Research by Jonathan Wright, a research economist at the Federal Reserve, questioned whether this relationship still held. But his questions were answered by the GFC in 2007/2008.