We will never agree in what makes sense explaining economy because it's a political question. The first thing to do, in my opinion, is to accept that. For me,

We will never agree in what makes sense explaining economy because it's a political question. The first thing to do, in my opinion, is to accept that. For me, personally, after trying to make sense for a while using the mainstream narrative, the only thing that worked was Modern Monetary Theory. Their explanation of the banking system is based in how it really works (mainstream textbooks don't), the sectoral balances framework (1) gives you a tool to think in terms of aggregate demand and their theory explain things that mainstream have problems with (like public debt ratios and inflation and interest rates relationships). There is a textbook available(2). 1.- https://en.wikipedia.org/wiki/Sectoral_balances https://en.wikipedia.org/wiki/Sectoral_balances 2.- http://bilbo.economicoutlook.net/blog/?page_id=33139 http://bilbo.economicoutlook.net/blog/?page_id=33139