22 lines
727 B
Markdown
22 lines
727 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Bank Economic Stability
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## Definition
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The condition of banking systems that maintain appropriate reserves, prudent lending practices, and stable note circulation to support rather than destabilise the broader economy. This stability is essential for economic development.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith analyses the conditions necessary for banking stability and its importance for economic development. He shows how stable banking supports commerce and production while unstable banking can cause significant economic disruption.
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## Economic Domain
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General Theory
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---
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