Condivergence: Why standard finance theory is incomplete — Andrew Sheng

Summary:
Mainstream finance theory suggests that money is the life blood of the real economy, helping to provide liquidity, means of payment, store of value, market price discovery and risk management, and reinforcing credit and governance discipline. These basic functions appear as self-evident truths — logical, consistent and convincing. But the 2007 global financial crisis revealed that these four functions can only operate depending on at least five more key interrelated preconditions of stability. Change in any one element would destabilise money and finance. These are: law and institutions, technology, politics, social inequality and climate change. Mentions MMT skeptically. The Edge Markets Condivergence: Why standard finance theory is incomplete Andrew Sheng

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Mike Norman considers the following as important: economics and finance

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