Economics Commons^™

On The Means Of Payment, Lester G. Telser

Lester G Telser

Economic Paradise: gold and free banking is the first topic. Paradise Lost: the Garden of Eden has a Serpent is the second topic. The third topic is Fiat Money and the Monetary Authority. It describes some banking reforms proposed by Henry Simons writing during the 1930’s when the U.S. economy was in the Great Depression. The main lesson relevant today is the danger inherent in linking the means of payment to credit. Restoring required reserves on all forms of deposit in banks as well as in firms that offer checkable accounts follows from Simons’ proposals. The fourth topic describes sources …