These crises were not caused by money that was too stable in value, but rather a short-term inflexibility of the base money supply around the harvest season.
If he is wrong, he will not only lose a lot ofmoney on his short, but he could also face civil liability to the company, which has yet to file a suit against him.
The LGA says it does not expect "significant financial problems" in the short term as town halls put money in a wide range of institutions and vital frontline services should not be affected.
The beauty of the idea is that it does not require any government money in the short term and after all it is the short term we are most interested in.
This means that there were buyers betting with borrowed money that the price of oil would climb and not fall and then got caught short when the margin increased.
The short answer is that spending impacts do not account for money leakages, and thus, are an inferior measure of economic impact because they fail to consider how much of the new money is actually retained locally.