amatecon.blogspot.com

Amateur Economics

Thursday, March 22, 2012. Bank Failures and the Great Depression. We have a banking system called "fractional reserve banking." The amount of cash held by a given bank is its reserves. However, banks carry *less* money than the *total* amount of money they theoretically hold on behalf of their clients. People tend to let their money sit in the bank, accruing interest (or it's just safer than keeping your cash under your mattress. However, if all of this bank's ten clients wanted to withdraw all ten thous...

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Thursday, March 22, 2012. Bank Failures and the Great Depression. We have a banking system called fractional reserve banking. The amount of cash held by a given bank is its reserves. However, banks carry *less* money than the *total* amount of money they theoretically hold on behalf of their clients. People tend to let their money sit in the bank, accruing interest (or it's just safer than keeping your cash under your mattress. However, if all of this bank's ten clients wanted to withdraw all ten thous...

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2 no comments

3 supply

4 somebody

5 but cheer up

6 zing

7 money

8 with beaver pelts

9 this is key

10 what

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Amateur Economics | amatecon.blogspot.com Reviews

https://amatecon.blogspot.com

Thursday, March 22, 2012. Bank Failures and the Great Depression. We have a banking system called "fractional reserve banking." The amount of cash held by a given bank is its reserves. However, banks carry *less* money than the *total* amount of money they theoretically hold on behalf of their clients. People tend to let their money sit in the bank, accruing interest (or it's just safer than keeping your cash under your mattress. However, if all of this bank's ten clients wanted to withdraw all ten thous...

INTERNAL PAGES

amatecon.blogspot.com

1

Amateur Economics: Supply!

http://amatecon.blogspot.com/2008/03/supply.html

Monday, March 24, 2008. We'll get to demand later. For now, we're starting with supply. Yes, supply and demand are cliches, but they actually mean something and they mean something very important. I think it's important to tackle each one separately, instead of in one quick lesson like most economics texts. The reasons will become clear by the end of the next lesson. Has to. And why do they do it? Firstly, how are suppliers decided? Do they select themselves and choose what they will supply? In the real ...

2

Amateur Economics: March 2008

http://amatecon.blogspot.com/2008_03_01_archive.html

Monday, March 24, 2008. We'll get to demand later. For now, we're starting with supply. Yes, supply and demand are cliches, but they actually mean something and they mean something very important. I think it's important to tackle each one separately, instead of in one quick lesson like most economics texts. The reasons will become clear by the end of the next lesson. Has to. And why do they do it? Firstly, how are suppliers decided? Do they select themselves and choose what they will supply? In the real ...

3

Amateur Economics: October 2007

http://amatecon.blogspot.com/2007_10_01_archive.html

Sunday, October 14, 2007. Money Dough. Bread. Mazoolah. Cha-ching. Greenbacks. The Green. Benjamins. Sweet Georgie Pea-Pod. Shim sham shadoobie. All of these are the names we give to money. Some were coined by me just now. Regardless of what we call it, money performs the same function. Why the heck do we have money, and what exactly is it? This is important, and I swear I'm not just coming up with filler material for my blog. How many eggs does it take to buy a car? How do they pay people? Just a darn m...

4

Amateur Economics: Money (Part II) and Wealth (Part I, I guess)

http://amatecon.blogspot.com/2007/11/money-part-ii-and-wealth-part-i-i-guess.html

Tuesday, November 6, 2007. Money (Part II) and Wealth (Part I, I guess). In my last Pulitzer-winning entry to this blog, I wrote about money, and how it replaced the barter system. To see this previous entry, you'd have to scroll down. Well I kind of lied. It didn't replace the barter system, it just made it easier to work with. Keep in mind that money isn't wealth, as it has no inherent value. Nothing. Has inherent value. But if money isn't wealth, then what the heck is? By the same token, if prices in ...

5

Amateur Economics: Introduction and the First Lesson: Incentives Matter

http://amatecon.blogspot.com/2007/10/introduction-and-first-lesson.html

Sunday, October 7, 2007. Introduction and the First Lesson: Incentives Matter. Hi everybody. This is the first post on my new blog about economics. People have told me I should have a radio show, or lobby Congress or the President, or run for office myself. So I did the next, most effective thing which will doubtlessly reach millions of people overnight- I started a blog. Economics is the study of the allocation of scarce resources which have alternative uses. Now a resource is a thing which can be used ...

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Amateur Economics

Thursday, March 22, 2012. Bank Failures and the Great Depression. We have a banking system called "fractional reserve banking." The amount of cash held by a given bank is its reserves. However, banks carry *less* money than the *total* amount of money they theoretically hold on behalf of their clients. People tend to let their money sit in the bank, accruing interest (or it's just safer than keeping your cash under your mattress. However, if all of this bank's ten clients wanted to withdraw all ten thous...

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