Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

862 Money, Bank Credit, and Economic CyclesError in negotio in the monetarydeposit contract, cause ofabsolute invalidity, 140–41European Monetary Union,803–05Exchange ratesfixed and flexible, 475,804–05fixed, 802Factor markets, making themflexible, 435Factors of production, 273Federal Reserve, 487–89Fiduciarycommodity money, 187, 198demand for, regarded as anexogenous variable, 679–84media, 187, 191nmoney, definition, 187Filtration of the money supplyout of the economic system,239–41Financial asset, 696“Financial innovations,” criticismof, because they flout thereserve requirement, 772–73Financial intermediariesbanks as true, 168, 174–77true, non-bank, 584–600Fixed capital goods. See Capitalgood“Flattening” of the productivestructure following the crisis,345, 380Florencefourteenth century bankingin, 70–71economic crisis and its triggers,71, 479–80crisis of the sixteenth century,81–82, 481–82Foley v. Hill, 125Forced lender, 149, 608Forced savingand forced expropriation,410nin a broad sense, 409–11in a strict sense, 411–12Fractional-reserve banking,115–65in life insurance, 163–64legal theory of, 706–12, 727probability in, 150, 386–88See also Life insuranceFractional-reserve free bankingCantillon on, 616contradictions in, 141–44critical analysis of, 675–712modern school of, 664–71Fraud in the irregular deposit, 9nde la Calle on, 86–87hidden in financial innovations,772Free bankingfailure of, 705problem with historical illustrationsof, 701–06See also Fractional-reservefree banking; Centralbanking; Chile; CurrencySchoolFuero Real, 34–35Full employmentin desperate circumstances,454–56assumption of, 440–43General equilibrium, Walras’smodel of, 514General price level stabilization,424–31and artificial lengthening ofproductive structure, 428