Law and Democracy in the New Russia

By Bruce L. R. Smith; Gennady M. Danilenko | Go to book overview

ROBERT E. LITAN


Fertile Money and Banks in Russia:
A Comment

Gordon Getty has written a fascinating and provocative paper about the role of money. As it turns out, however, the ideas advanced in his paper are more relevant to the United States than to Russia. I will explain why as I proceed.


THE PROBLEM WITH BANKS

It is perhaps useful to begin by summarizing what I understand to be Getty's main arguments. In the process, I use some literary license to translate Getty's claims into the economic language I find more familiar.

Getty starts by noting that money is whatever individuals and firms accept as a medium of exchange. In modern economies, both currency issued by the state (or its central bank) and deposits at banks or other depository institutions have fit this definition. In practice, however, deposits are much more important. For example, at the end of 1992 in the United States there was $292 billion in currency outstanding as against $726 billion held in checking accounts in commercial banks and savings and loans and nearly $2.5 trillion in money market funds, money market accounts at banks, and savings and small-time deposits held in banks and thrifts.

There is a problem with bank deposits, however. As banks and other depository institutions have evolved, they have invested the potentially liquid deposits they have collected--that is, funds which can be with-

This paper is a revised version of oral comments I provided at the January, 1993, conference. Since attending that conference, I have become involved in a Treasury-financed program that provides technical assistance to bankers in Russia and the Ukraine.

-89-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Law and Democracy in the New Russia
Table of contents

Table of contents

  • Brookings Dialogues on Public Policy ii
  • Title Page iii
  • THE BROOKINGS INSTITUTION v
  • To the memory of Ed A. Hewett vi
  • Editors' Preface vii
  • Contents ix
  • Contributors x
  • Constitutionalism in the New Russia 1
  • Vasily A. Vlasihin Toward a Rule of Law and A Bill of Rights for Russia 43
  • Note 52
  • Fertile Money 73
  • Fertile Money and Banks in Russia: A Comment 89
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 118

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.