Wikipedia:Reference desk/Archives/Humanities/2021 December 19
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December 19
[edit]Is fractional reserve banking and etc... possible with a coin that has demurrage?
[edit]Is fractional reserve banking and etc... possible with a coin that has demurrage?
Does demurrage make impossible to fractional reserve baking and etc.. impossible to happen?177.159.33.151 (talk) 21:41, 19 December 2021 (UTC)
- No idea, but I think you mean Demurrage (currency), your link was about ship charters. Alansplodge (talk) 22:30, 19 December 2021 (UTC)
At the very basic level, all currency is subject to demurrage: production costs are below face value, and those that issue the currency charge taxes. Since there is no shortage of economies prospering under fractional reserve systems, the obvious answer is that there is nothing about demurrage, per se, that directly creates any specific problems related to fractional reserve banking. DOR (HK) (talk) 22:43, 19 December 2021 (UTC)