Institutional Usury and the Banks
AbstractAlthough usury is no longer widely discussed in economic discourse, the concept of usury is useful in explaining financial upheavals such as the recent and on-going crisis. The Scholastics began the study of interest with their teachings on usury, and Keynes brought the usury debate back into the discussions during the period around the Great Depression. Bernard Dempsey, a Jesuit economist, wrote a definitive assessment of scholastic theory in the early 1940s under the direction of Schumpeter. Dempsey developed his own theory of financial crises which he attributed to the presence of what he termed “institutional usury.” The recently implemented policy by the Federal Reserve of paying banks interest on reserves is examined in light of Dempsey's concept of institutional usury. The scholastic concept of the just price is used to analyze market power wielded by large financial institutions in the modern economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Review of Social Economy.
Volume (Year): 69 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=104728
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shaikh, Salman, 2012. "Interest Based Financial Intermediation: Analysis and Solutions," MPRA Paper 42500, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.