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> I would say, no.. considering the divergence of expert opinions. I would disagree and think it needs more details. There is difference between just 'how mone
by zajio1am 6y ago
> I would say, no.. considering the divergence of expert opinions.
I would disagree and think it needs more details. There is difference between just 'how money works' and 'how economy works'. The first question 'how money works' is mostly just insitutional and legal knowledge of existing processes of central and commercial banks.
OTOH, 'how economy works' is empirical field of knowledge about complex emergent phenomenon - the economy, and contains questions like how would economy reacts on specific monetary policies. That is what macroeconomic theories like keyensianism and monetarism are about.
- dalbasal 6y agoKeyensianism and monetarism are essentially "how money works." Microeconomics is "how the economy works," and while there are still divergent opinions, there's stability in that divergence. Ricardo is still foundational when it comes to trade, for example. The premise of macroeconomics is that how money works is different to that. That started with keynes, and continues through keynesianism. Monetarism literally refers to "a theory of money." The point is that it isn't mostly just institutional and legal knowledge of existing processes of central and commercial banks. Those things regulate and affect money, but how it works is macroeconomics.