3.6. Banks and their Credit
Fractional-reserve banking is a system where the banks lend some of their deposits and earn interest, but it comes with risks.
Recent Podcast Episodes
1.11. The Par Value or Ratio between the Value of Land and Labor
Only money— a “most certain measure”—can be used for income measurements and comparisons.
1.16. The more Labor there is in a State, the more the State is Judged Naturally Rich
The wealth of a nation depends on putting the labor force to work.
2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange
A variety of factors affect the flow of money in circulation and this in turn affects the amount of money in circulation.
2.9. Interest on Money and its Causes
Interest rates on loans are connected with an individual’s time preference.
3.4. The Variations in the Proportion of Values with Regard to the Metals Used as Money
The price of gold and silver and the ratio between them is determined by markets and is also based on their usefulness, cost of production, and transportation costs.
1.4. Market Towns
Entrepreneurs establish markets in centrally located villages which provide the necessary conditions under which prices are established between supply and demand.
1.9. The Number of Laborers, Artisans, and Others, Who Work in a State, is Naturally Proportioned to the Demand for Them
Prosperity cannot be created by subsidizing job training.
1.14. The Desires, Fashions, and Ways of Life of the Prince, and especially of the Property Owners, Determine the Use to which Land is put in a State, and Cause the Variations in the Market Prices of all Things
Cantillon constructs a model of the isolated estate or closed economy where the choices of property owners determine outputs and prices, regardless if they manage the isolated estate or lease it to farmers.
2.7. Continuation of the same subject
Changes in the quantity of money will change relative prices and have real effects on the economy, a phenomenon now known as the "Cantillon Effects".
3.2. On Bills of Exchanges and their Nature
Bills of Exchange are a type of contract that can reduce the expense associated with transporting money.
3.7. Further Explanations and Enquiries as to the Utility of a National Bank
National Banks are of little utility and can be the source of economic chaos.
1.7. The Labor of the Plowman is of Less Value than that of the Artisan
Skilled workers must be paid higher wages than unskilled workers.
1.12. All Classes and Individuals in a State Subsist or Grow Rich at the Expense of the Property Owners
Cantillon develops a circular-flow model of the economy that shows the distribution of farm production between property owners, farmers, and workers.
1.17. Metals and Money, and especially of Gold and Silver
Gold and silver hold many advantages over other goods, such as durability, divisibility, transportability, and homogeneity
2.5. The inequality of the circulation of hard money in a State
If factories were permitted in rural areas, basic commodities could be turned into goods, which could then be sent to the cities at a much lower transport cost.
2.10. The Causes of Increases and Decreases of the Interest Rate on Money in a State
The interest rate is a critical factor in the valuation of assets.
