Tags: loanable funds theory

Bank of England Endorses Post-Keynesian Endogenous Money Theory

Well, the Bank of England has finally come out and said it: loans create deposits; banks create money and don’t simply lend out savings; and the money multiplier in the economics textbooks is false. Actually, we’ve known this for a long, long time. more »

Keynes and Loanable Funds

I was recently discussing econometrics and Keynes’ critique of it with Severin Reissl, a particularly clever student currently attending the University of Glasgow who is critical of mainstream economics. more »

Banks are Not Intermediaries of Loanable Funds – and Why this Matters

Problems in the banking sector played a seriously damaging role in the Great Recession. In fact, they continue to. This column argues that macroeconomic models were unable to explain the interaction between banks and the macro economy. more »












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