The money supply from a trader’s perspective

At the end of WWII, the money supply in the UK was virtually 50% Cash from the Government and 50% Credit from banks. Now the ratio is 97% to 3%.

Making money out of money seems a special kind of skill in such circumstances, but in Islam it is a deadly sin!

Check this entry from an Indian currency trader.

Advertisements

2 responses to “The money supply from a trader’s perspective

  1. Where does the figure of 3% for the reserve ratio come from? Is it not true that the up-to-date figure is actually close to zero?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s