Antal fekete bitcoin wiki
In 17th century Britain, high-quality commercial paper was for over a century considered a sound reserve asset for banking and brokerage purposes. However, current economic thinking, epitomized by J. Keynes, criticizes the gold standard for being the cause and international transmission vector of the s depression. Both the quantity and quality sides in the debate over a correct theory of money acknowledge that a worldwide, gold-coin standard would seriously reduce government sizes, limit their indebtedness, and curtail their ability to run large deficits.
Both strongly advocate a return to the gold-coin standard in preference to the current monetary system, which both groups consider unsustainable and destructive. Fekete maintains that the influx of fresh monetary metal into an area is not inflationary and contends that it is a widespread academic myth.
The real bills would be drawn on newly manufactured goods. Both goods and bills disappear from circulation, as soon as the final, gold-paying consumer withdraws his goods from the shop. A high discount rate would tend to draw gold to a region and a low discount rate would tend otherwise. Previously submarginal goods would as a result of the new purchasing media become marginal again.
Manufacturing of new goods in high demand by consumers would emerge together with new gold. Real bills are withdrawn from circulation after one season as soon as the corresponding goods of which abstraction was made in the form of a real bill are consumed being 91 days maximum. The assumption is an honest and publicly scrutinized discount system, rejecting both the Acceptance House shelter and rollover practices of real bills and phantom goods, which would be inflationary.
If prices of certain or all goods or services were rising under an unadulterated gold standard there would be another explanation for example, war. The linear quantity of money theory also does not hold when one takes into consideration that new monetary metal is even more likely to enter the markets of financial instruments and savings. Under a fiat currency standard, the addition of new purchasing media brings down interest rates over sustained periods of time, marginalising existing manufacturers.
It erodes the purchasing power and siphons money into government bonds, which are offering a capital gain with every increase in the quantity of money through open market operations. Equilibrium Theory is one-dimensional and flawed according to Fekete.
Under an unadulterated gold standard, the floor rate of interest is determined by the marginal time preference theory and the ceiling rate is determined by the marginal productivity of fixed capital. The ceiling rate is determined by the marginal productivity of speculation. During the period of the gold coin standard although not entirely unadulterated , in use in a large portion of the world during almost years since the beginning of the 19th century in the British Empire, interest rates and prices were amazingly comparable and stable among the participating countries.
Whereas stable rates are acceptable for every protagonist under a gold coin standard, gyrating rates are destructive for capital providers. Mainstream economists maintain that lower rates are necessary to reflate the economy. Fekete contends that liquid capital, when dissatisfied with its remuneration, has been seeking better opportunities by expanding Eastwards risk seeking capital or by seeking shelter in the bond market risk averse capital.
In macro-economics, this is called the liquidity trap. Most economists maintain that Western economies are evolving from a manufacturing into a service-economy. Fekete contends that the unstable interest rate regime destroys the industrial capital base of Western developed economies.
The destruction takes two forms: One, new risk seeking entrants convert liquid capital into fixed capital but are trapped by ever lower rates, and incur opportunity costs. Only few economic participants are able to renegotiate lower rates with financiers or issue reverse convertible bonds. Two, older participants realize they cannot compete with new entrants locally or abroad who financed their plant at lower rates — their role is reduced to price takers — and are eventually forced to convert fixed capital back to liquid capital, taking losses and shedding their labor complement in the process.
The risk averse investor is in the majority and shelters his capital in the government bond market, withholding much needed equity from the economic scene.
He contends that holders of monetary metal are to a large extent professionals and are using the futures market to hedge their physical long positions with an equivalent short in the futures market, in much the same way as a grain elevator operator.
The offsetting of long positions with short futures would only appear to be naked, as participants to the futures market are under no obligation to divulge their hedge. This type of professional trading is known as Basis Trading.
If spot prices of gold or silver are permanently above their futures price, the precious metals market is going into permanent backwardation. According to Fekete, the silver market being more volatile and narrower, once going into permanent backwardation, will function as an early warning system for the end of the fiat currency system.
Mainstream economic theorists criticize gold-standard-oriented monetary economists and vice-versa. Most criticism leveled against Fekete originates from doctrinaire Austrian Economists. Bank runs have other sources such as fraud[33] or duration mismatch but not fractional banking nor discounting.
Some economists have accused Fekete of displaying many of the key aspects of being a monetary crank. Speculation is absent in Keynesian, Marxian, Walrasian, and Austrian economic theory. By merging the Time Preference Theory on the Origin of Interest with the Productivity of Capital, resulting in what he calls his Hexagonal Model, the drivers for the ceiling and the floor rate, Fekete maintains that economic thinking has been enriched, since the above has been missing in both Austrian and traditional economic thought.
He has reconciled both theories existing for more than a years in a single disequilibrium model, the only one of his kind. This reconciliation ends all reason to treat both theories as opposing each other. The same model works, slightly adapted for a fiat credit system such as the one in operation worldwide to date.
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Fekete Introduction Antal E. Biography Fekete was born in Budapest , Hungary , in His book Le Retour au Standard Or was published in Paris in At the end of , the New Austrian School of Economics received an endowment to continue its activities in teaching, publishing and research, et al.
Monetary research Fekete is an autodidactic on monetary economics. From Wikipedia, the free encyclopedia. Archived from the original on 29 November Retrieved 25 January Archived from the original on 14 September Retrieved 26 October Archived from the original on 16 October Hungary football squad — Summer Olympics — Gold medal. Hungary football squad — Summer Olympics — Silver medal. Hungary men's football squad — Summer Olympics. NB I top scorers. Antal Dunai — Managerial positions.
Xerez CD — managers.