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No? Fractional Reserve Banking is less than 100 years old. We didnt have fluctuating interest rates among the working class. When the world used gold and silv
by robertAngst 9y ago
No?
Fractional Reserve Banking is less than 100 years old. We didnt have fluctuating interest rates among the working class.
When the world used gold and silver you would have trade deficits causing economic troubles.
These are vastly different problems, still problems though.
- Lazare 9y ago> Fractional Reserve Banking is less than 100 years old. Fractional reserve banking is centuries old, and originally involved deposits of gold and silver (first at goldsmiths, but as early as the 1660s at banks). Europe's first bank run happened in 1664, when people tried to redeem bank notes for the underlying reserves. > We didnt have fluctuating interest rates among the working class Interest rates fluctuated, and the working class were deeply exposed to the impacts. > When the world used gold and silver you would have trade deficits causing economic troubles. Global financial crises were routine during the era of metal-backed currencies and did not only (or mainly) relate to trade deficits. See, eg, the panics of 1819, 1825, 1837, 1847, 1857, 1866, 1873, 1884, 1890, 1893, and 1896. (And that's just focusing on US and UK history during the 19th century; the list could be much longer!) > These are vastly different problems Citation very much needed.