Steve covers why the Neoclassical model of banking known as “Loanable Funds” is a dangerously misleading caricature of actual banking, why credit has a crucial role in macroeconomics, and why savings is a sensible activity for individuals but has a destructive impact on aggregate demand.
Begins at 11:00
Did the banking crisis ever end, or continue in other forms? New Weather teamed up with Prime Economics on the anniversary of the crisis to ask the big questions To visit the website of the […]
I cover “the usual” in my talk itself: the empirical data that screams that credit plays an essential role in macroeconomics, the a priori reasons that mainstream economists ignore it, why this is logically wrong […]