A few thoughts on Vollgeld and Chicago Plan. I am glad that more and more people are discarding the conventional view of "money creation" and that banks lend out reserves. But I am afraid we have swung too far. And some post Keynesian are guilty of fueling this like of thinking.
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There is a common misperception that because banks create money out thin air, they remove the constraint that investment has to be "funded" by saving (s), thus subverting loanable funds theory. Nothing could be wronger.
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Replying to @teasri
I gave up trying to understand this view - pushed by so-called 'Modern Monetary Theorists' (MMT) who Brad Delong rightfully mocked as 'Ancient Fiscal Tautologists'
3:25 PM - 7 Jun 2018
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