4 ms·

Will read this but not sure I'll agree. Banks create money and it is fungible with state tax payment money http://www.bankofengland.co.uk/research/Pages/workin

• RobertoG 10y ago
  It's a different kind of money, because in a case debt is created and in the other no (even if we use the fiction that it is): https://pediaview.com/openpedia/Modern_Monetary_Theory#Vertical_transactions https://pediaview.com/openpedia/Modern_Monetary_Theory#Verti... http://www.nakedcapitalism.com/2015/01/bill-mitchell-demystifying-modern-monetary-theory.html http://www.nakedcapitalism.com/2015/01/bill-mitchell-demysti... (thanks for the link)
  • branchless 10y ago
    I'm going to read these too. I think nakedcapitalism is such a great blog. I agree one is created as debt which will be destroyed ultimately on repayment. However this is the nub - they create 100 and demand back 110 at a later date, therefore more must be lent in the interim to avoid a deflationary collapse.