The Case Against Full Reserve
Fractional reserve banking allows for maturity transformation, which economists (such as J. Bradford DeLong and Paul Krugman) believe is the central function of the financial system.
Read more about this topic: Full-reserve Banking
Famous quotes containing the words case, full and/or reserve:
“The function of muscle is to pull and not to push, except in the case of the genitals and the tongue.”
—Leonardo Da Vinci (1425–1519)
“California is a queer place—in a way, it has turned its back on the world, and looks into the void Pacific. It is absolutely selfish, very empty, but not false, and at least, not full of false effort.”
—D.H. (David Herbert)
“Mutual repect implies discretion and reserve even in love itself; it means preserving as much liberty as possible to those whose life we share. We must distrust our instinct of intervention, for the desire to make one’s own will prevail is often disguised under the mask of solicitude.”
—Henri-Frédéric Amiel (1821–1881)