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The Cyprus crisis has viaulrtly nothing to do with fractional reserve banking. The run on the Cypriot banks is due to the negative interest rates being charged to depositors by the banks. The hair cut is to pay for bad investments Cypriot banks made in Greek bonds when they lost 50% of their investment in the previous Greek government haircut. The banks would have had problems fractional reserve banking or no fractional reserve banking. We must not be seduced into ignoring the real source of the problem, government economic policies base don Keynesian theory. The governments are to blame not the banks, though it is hard to separate the two..
OCENA OGÓLNA: 2/5
Jakość: 5/5
Cena: 3/5
Wygląd: 5/5 |
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