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Article #11084Re: ATM fees are about to rise substantially
From: Bill Funk
Date: Thu, 18 Apr 1996 00:00
Date: Thu, 18 Apr 1996 00:00
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1978 bytes
Peter Mlynek wrote: > A quick question for people versed in macroeconomics: > > If the fees for transactions do rise, this would result in greater > propensity to take out cash in larger amounts, which would decrease the > velocity of money. Ceteris paribus, this lowering of velocity would > have negative impact on the ecomony. Can anyone explain why this is > (assuming my reasoning is correct)? > > --Peter Mlynek ========== I'm not saying I'm versed in macroeconomics, but here goes: This taking out larger amounts of money for each transaction doesn't seem to change anything except the frequency of use of the ATM. There's no correlation with how that money is spent, is there? IOW, only the velocity between the customer and the bank is slowed, which doesn't mean anything to the economy (except to the bank). No? -- Bill Funk - skypilot@starlink.com ASCIi User Group - http://www.starlink.com:80/~ascii User groups: More info than you can shake a CD at! Try one near you!
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 11474a,157b062a620f5a46 X-Google-Attributes: gid11474a,public X-Google-Thread: f6c48,157b062a620f5a46 X-Google-Attributes: gidf6c48,public X-Google-Thread: 107518,157b062a620f5a46 X-Google-Attributes: gid107518,public X-Google-Thread: 101049,ca5adf996ba48f28 X-Google-Attributes: gid101049,public From: Bill Funk <skypilot@starlink.com> Subject: Re: ATM fees are about to rise substantially Date: 1996/04/18 Message-ID: <31763B62.249B@starlink.com> X-Deja-AN: 148173383 references: <4jp9vo$771@dfw-ixnews4.ix.netcom.com> <4jrlo7$1746@tiger2.ocs.lsu.edu> <4l1qj4$r8q@master.ftn.net> <mlynek-170496163335@larryjr.chem.wisc.edu> content-type: text/plain; charset=us-ascii organization: Az. Society for Computer Information, inc. mime-version: 1.0 newsgroups: misc.consumers,misc.consumers.frugal-living,alt.consumers.experiences,dc.general x-mailer: Mozilla 2.01Gold (Win95; I)