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 is hardly a pioneer’s hut which does not contain a few odd volumes of Shakespeare. I remember reading the feudal drama of Henry V for the first time in a log cabin.”
—Alexis de Tocqueville (1805–1859)
“Seeing is believing, and if an American success is to count for anything in the world it must be clothed in the raiment of property. As often as not it isn’t the money itself that means anything; it is the use of money as the currency of the soul.”
—Lewis H. Lapham (b. 1935)
“Local television shows do not, in general, supply make-up artists. The exception to this is Los Angeles, an unusually generous city in this regard, since they also provide this service for radio appearances.”
—Fran Lebowitz (b. 1950)