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Larry Summers is not financially literate.
by mempko 3y ago
Larry Summers is not financially literate.
- astrange 3y agoWell he is certainly financially literate. He's just often wrong and incapable of admitting it, as is normal behavior for important economists.
- mempko 3y agoBeing financially literate means being able to understand how the financial system works. Larry Summers thinks operate as intermediaries lending out deposits. This is very wrong. He is not financially literate. He is an economist.
- astrange 3y agoI think Larry Summers probably knows what a central bank is. But "how money creation works" isn't the same thing as "how the financial system works". I guess the financial system mostly works over ACH. We can see what happens when banks don't lend out deposits, because that's basically what caused SVB to fail. So by the contrapositive, they aren't really operating then.