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Asset Allocation, Credit Regulation, and Banking Supervision

In: Capitalism Without Capital

Author

Listed:
  • Dimitris N. Chorafas

    (New York Academy of Sciences)

Abstract

Chapter 3 brought to the reader’s attention two of the basic functions of central banks: monetary policy, which aims at establishing the right money supply for the economy, and the fight against inflation to safeguard the value of money earned and saved by people and companies. Chapter 4 pressed the point that money has a cost which in nominal terms is expressed by the interest rate established by the central monetary institution. It also explained why currency exchange risks and other factors impact on the cost of money.

Suggested Citation

  • Dimitris N. Chorafas, 2009. "Asset Allocation, Credit Regulation, and Banking Supervision," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Capitalism Without Capital, chapter 6, pages 113-134, Palgrave Macmillan.
  • Handle: RePEc:pal:pmschp:978-0-230-25102-1_6
    DOI: 10.1057/9780230251021_6
    as

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