What will happen if the banking systems of major countries will collapsed?
henry asked:
During the last thirty five years have been the most tumultuous in international monetary history. The shock then led to the reversal in the cross-border flow of capital and the price of that country’s currency in the foreign exchange market declined sharply as well as the price of securities traded declined. Is there possibility that the world banking system will collapse?
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During the last thirty five years have been the most tumultuous in international monetary history. The shock then led to the reversal in the cross-border flow of capital and the price of that country’s currency in the foreign exchange market declined sharply as well as the price of securities traded declined. Is there possibility that the world banking system will collapse?
May 11th, 2009 at 1:21 am
which country are you talking about?
Most industrialized countries are getting increasingly good at avoiding financial crisis.
May 12th, 2009 at 10:42 am
That’s the plan.We then enter a cashless society.
May 15th, 2009 at 1:20 am
mH=Cash + Deposits Money Supply, m is the multiplier
M=mH
M=µPY
Y=C+I
mH=µP(C+I)
C+I= mH/µP If Deposits or Cash dissappear, Consumption and Investment decreases worldwide. Prices are key.
It´s not likely that a worldwide collapse could affect us.