Institutional Usury and the Banks
Although 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.
Volume (Year): 69 (2011)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RRSE20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RRSE20|
When requesting a correction, please mention this item's handle: RePEc:taf:rsocec:v:69:y:2011:i:4:p:419-438. See general information about how to correct material in RePEc.
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.