by The mainstream economic idea that banks are just intermediaries between savers and investors is a fantasy, but given that fantasy, their argument that the level and rate of change of private debt are not macroeconomically significant (except at the “Zero Lower Bound”) is correct. But in the real world, the role of the level and rate of change of private debt is crucial. I illustrate this by building a Minsky model of Loanable Funds and converting it to the real world of Endogenous Money. Then I explain how credit growth plays an essential role in aggregate demand and income, and how this is consistent with the truism that Expenditure equals Income. [embedded content] Powerpoint Slides. Minsky files (right-click to save to your PC): Loanable Funds; Endogenous Money.
Topics:
Steve Keen considers the following as important: Debtwatch
This could be interesting, too:
Steve Keen writes Zimpler Casino Utan Svensk Licens ? Utländska Casino Mediterranean Sea Zimpler
Steve Keen writes Login Sowie Spiele Auf Der Offiziellen Seite On The Internet”
Steve Keen writes Login Bei Vulcanvegas De Ebenso Registrierung, Erfahrungen 2025
Steve Keen writes What To Be Able To Wear To The Casino? The Complete Dress Guide
The mainstream economic idea that banks are just intermediaries between savers and investors is a fantasy, but given that fantasy, their argument that the level and rate of change of private debt are not macroeconomically significant (except at the “Zero Lower Bound”) is correct. But in the real world, the role of the level and rate of change of private debt is crucial. I illustrate this by building a Minsky model of Loanable Funds and converting it to the real world of Endogenous Money. Then I explain how credit growth plays an essential role in aggregate demand and income, and how this is consistent with the truism that Expenditure equals Income.
Powerpoint Slides. Minsky files (right-click to save to your PC): Loanable Funds; Endogenous Money.