Background: Banking and Causality
Our quest is a cross-disciplinary theory of financial regulation, grounded upon economic history. Before we proceed further on this journey, there are two backgrounds we should share. First, what is banking? Second, what is explanation? We have seen that panics occurred in banking. Why? We have argued that explaining these panics cannot be causal. Why? We review some background, first about banking and second about causality.
KeywordsCentral Bank Financial System Federal Reserve Money Supply Private Good
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