Much has changed in the institutional organization of money markets since Fall 2012 when INET filmed my course “Economics of Money and Banking”, but what strikes me most is how well the fundamental analytical structure has held up. The two ideas that I identify as central to the “money view”—the importance of the daily settlement […]
The following was inspired by my attendance at a recent conference, Money as a Democratic Medium, where I gave a short talk. The “Money View”, as regular readers of this blog will know, is my attempt to systematize a way of thinking that has a long history among practitioners, especially central bankers, but that has […]
In his recent paper, “A Lost Century in Economics: Three Theories of banking and the conclusive evidence”, Richard Werner argues that the old “credit creation theory” of money is true (empirically “accurate”), while both the newer “fractional reserve theory” and the presently dominant “debt intermediation theory” are false. For him, this matters mainly because the […]
As regular readers know, I emphasize two central functions of monetary systems: payments and market-making. These are the foundation pillars of what I call the “money view”. In my teaching, I have come to appreciate a variety of barriers that people bring with them to the study of money, and to appreciate the necessity of […]