The central bank’s dilemma, the inflation-deflation paradox and a new interpretation of the Kondratieff waves
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2013
- ISIDORE Id: 10670/1.f5cb47...
- 1315-2467
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Economía
Mots-clés
Economía y Finanzas money multiplier financial crisis Kondratieff waves Fractional reserve bankingSujets proches
Specie Monetary question Money, Primitive Currency Standard of valueCiter ce document
Felix Fuders et al., « The central bank’s dilemma, the inflation-deflation paradox and a new interpretation of the Kondratieff waves », Economía, ID : 10670/1.f5cb47...
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Résumé
The article tries to contribute to a new understanding of how money is created by commercial banks and to describe the dilemma, which after some time, every Central Bank within the fractional reserve banking system faces. This dilemma provides an explication for the politics of “cheap money” that has been applied by Central Banks of almost every industrialized economy during the last years, despite the fact that the money supply has reached unprecedented levels. This context is then used to describe what might be called the “Inflation-Deflation Paradox” and to offer a new interpretation of the long economic cycles, the so-called Kondratieff waves.
