Henry Simons and The Money Supply
Finally, Simons believed the price level needed to be more flexible to accommodate fluctuations in output and employment. To this end, he advocated a minimum of short-term borrowing, and a maximum of government control over the circulation of money. This would result in an economy with a greater tolerance of disturbances and the prevention of "accumulated maladjustments" all coming to bear at once on the economy. In sum, Simons’ chief problem was with a financial system in which the movement of the price level was in many ways beholden to the creation and liquidation of short-term securities. To Simons this threatened financial instability.
Read more about this topic: Henry Calvert Simons
Famous quotes containing the words henry, money and/or supply:
“There are in every generation those who shrink from the ultimate sacrifice, but there are in every generation those who make it with joy and laughter and these are the salt of the generations.”
—Patrick Henry Pearse (1879–1916)
“The universal regard for money is the one hopeful fact in our civilisation. Money is the most important thing in the world. It represents health, strength, honour, generosity and beauty.... Not the least of its virtues is that it destroys base people as certainly as it fortifies and dignifies noble people.”
—George Bernard Shaw (1856–1950)
“The job of the press is to encourage debate, not to supply the public with information.”
—Christopher Lasch (b. 1932)