O Intermitente<br> (So long, farewell, auf weidersehen, good-bye)

O Intermitente
(So long, farewell, auf weidersehen, good-bye)

sexta-feira, julho 18, 2003

Os Mitos da Deflação pt III

Tipos de deflação - lado da oferta

1. Bank Credit Deflation

"[W]hen depositors lost confidence that banks were able to continue redeeming the titles?represented by bank notes, checking and savings deposit ?to the property theyhad entrusted to the banks for safekeeping and which the banks were contractually obliged to redeem upon demand. This property was usually gold and silver money and the fractional-reserve banks were not in a position to discharge their contractual obligations to all its rightful owners at once because they had created multiple titles to this property in the course of their lending operations."

"In the case of other banks, the threat that their depositors would demand cash payment en bloc was sufficient reason to induce them to reduce their lending operations and build up their ratio of reserves to note and deposit liabilities in order to stave off failure."

"These two factors together resulted in a large contraction of the money supply and, given a constant demand for money, a concomitant increase in the value of money. After national central banks took legal custody of the public?s gold deposits, which occurred in the U.S. during World War One, the central bank itself usually engineered bank credit deflation during financial crises provoked by its previous inflationary policy in order to protect these gold deposits and to avert the depositor?s loss of faith in the overall banking system."

"When any firm that trades on its trustworthiness, be it a financial services firm, an armored car company or a law firm, loses the confidence of its customers or clients that it is operating in their best interests, it will be rapidly purged from the market by an adjustment process that reallocates resources and improves the welfare of consumers. Bank credit deflation represents just such a benign and purgative market adjustment process."

"[I]n the era before the 1930?s when the natural flexibility of prices and wage rates prevailed and was not impeded by legal constraints, bank credit deflations in the U.S. were swift and devoid of severe economic dislocations."

"[Na crise de 1929-1933] the rigidity of prices and wage rates induced by the ?stabilization? policies of the Hoover and early Roosevelt Administrations prevented the deflationary adjustment process from operating to effect the reallocation of resources demanded by property owners."

2. Confiscatory Deflation

"[A]n emphatically malign form of deflation that is coercively imposed by governments and their central banks and that violates property rights, distorts monetary calculation and undermines monetary exchange. It may even catapult an economy back to a primitive state of barter, if applied long and relentlessly enough.This form of deflation involves an outright confiscation of people?s cash balances by the political and bureaucratic elites."

Nota: O autor relata detalhadamente os eventos da recente crise argentina nas pp 15-20
posted by Miguel Noronha 5:36 da tarde

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"A society that does not recognize that each individual has values of his own which he is entitled to follow can have no respect for the dignity of the individual and cannot really know freedom."

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