(An American Economic Association Publication)
Commercial Banking in the presence of Inflation
by
A.L.M. Abdul Gafoor
Devises a method to determine the realized
inflation component contained in the interest paid, or charged, by a bank so
that capital-owners --- especially those opposed to receiving interest payment
for religious or other reasons --- can be compensated for the loss of value of
their capital due to inflation. Discusses inflation and its measurement;
capital erosion due to inflation; a new measure of inflation on capital; and
ways of introducing this measure into the modern commercial banking system.
Addresses some finer technical points of practical importance, including the
effect of commercial bank credit creation on the compensation-for-inflation
component of the cost of borrowing. Bibliography; index.
Groningen: Apptec
Publications, ISBNs 90-802354-3-1,pbk; 90802354-5-8, hdc; xii+116 pages, 1999.
$17.50,
paperback; $35.00, hard cover.