Day: December 3, 2019

Maturity Transformation: Transferring Risk from the Elites to the Public

Maturity transformation should be illegal. Maturity transformation is the process by which short-term deposits at banks are lent out as long-term obligations. Deposits, which are redeemable at any time, are not actually available. They are tied up in loans that are not redeemable. This makes fractional reserve banking even worse than it would be by […]

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