http://www.lendinguniverse.com/ mobile home financing wholesale On the other hand, if the amount of money decreases or if its rate of movement slows down, then prices, output, and employment will decline. Every major depression has been accompanied by a substantial decline in the money supply, and often by a complete collapse of the banking system. Among the many causes responsible for our major depressions, money and banking difficulties have always been prominent. People have been using money for thousands of years and they’ve always had trouble with it. Sometimes people are complaining about inflation and blaming it on an excessive increase in the money supply. Sometimes the trouble is recession-unemployment, idle factories, and falling prices. Then they complain that the money supply is being kept too small. There is seldom just the right amount of money circulating. A variety of devices for properly controlling the money supply have been tried in the last few hundred years. The next two chapters trace the development of monetary arrangements from the period of exclusive reliance on metal coin, through the era of privately issued paper money, down to the present system of control by the Federal Reserve System. It is easy enough to see that money is important to all of us and to see why, after centuries of experiments, we have made elaborate arrangements to control its supply in the public interest. But this only raises new questions how that power is to be used. The money supply influences expenditures for goods and services. Properly managed, it can promote four of the major objectives of economic policy: full employment, price stability, growth, and balance-of-payments equilibrium.
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