ECON 219 Lecture 20: Econ219-Lecture20
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ECON 219 Full Course Notes
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Financial community allocates money, and is dominated by banks, as in the central bank. Today = central banking, and the degree to which the banking system does the job of allocating capital rationally. Exam: subsection of this called currency board institution semi kind of bank which occupies a half way point between two points of view of banking and central banking. Troubles in current banking is due to evolution of the financial markets. Read: should we reduce the role of banks in the monetary policy process. Government regulation of shifting lm curve doesn"t really work. Bank no longer is a principle when you go to look for money, rather an entity that helps you find somebody who has money to lend. Senior banks should keep deposits, for making exchanges. Well, you could describe its value as a collection of commodities.