Lars P. Syll — Kalecki and Keynes on the loanable funds fallacy

Summary:
Banks are not intermediaries between savers and borrowers, and finance is not allocating existing savings to future investment. The opposite is true. Bank credit is self-funding; in credit extension, loans (assets) create deposits (liabilities). In finance as allocation of capital, investment creates saving.Lars P. Syll’s BlogKalecki and Keynes on the loanable funds fallacyLars P. Syll | Professor, Malmo University

Topics:
Mike Norman considers the following as important: john maynard keynes, loanable funds theory, michal kalecki, neoclassical economics, Post Keynesian Economics

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