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> fundamentally the incorrect claim that banks lend out their depositors funds To an extent that 2022 Noble prize in Economic dished out this same trope!
by vishnugupta 4y ago
> fundamentally the incorrect claim that banks lend out their depositors funds
To an extent that 2022 Noble prize in Economic dished out this same trope!
- r3trohack3r 4y agoFor those of us who want to learn - any good resources/primers on how banks actually work?
- unmole 4y agoEconomics of Money and Banking by Perry G Mehrling. Available as a MOOC on Coursera and a YouTube playlist.
- kasey_junk 4y agoI really like Mehrling's theories but I think anyone that points to his work should reasonably caveat by saying a) there is not a lot of broad agreement with it in economics circles and b) its describing a system that was dramatically changed by the 2008 financial crisis and the Money View might be found completely wanting before it achieves uptake as a major economic theory. I've not watched the listed course so this shouldn't be seen as a criticism of it, only as context for the theories broadly espoused by Mehrling.
- unmole 4y ago> there is not a lot of broad agreement with it in economics circles This is fair. > its describing a system that was dramatically changed by the 2008 financial crisis Mherling emphasizes the historical development of central banking but I don't think the Money View is describing an outdated system. The MOOC itself came out after the 2008 financial crises and it does reference Quantitative Easing as a response to the European sovereign debt crisis.
- vishnugupta 4y agoCoincidentally, Bank of England has a terrific explainer on this exact topic [1]. It gets straight to the point and explains without resorting to jargons. [1] https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...