Why Credit Money Matters - by Steve Keen

#economics #finance

Ben Bernanke and two other Neoclassicals were awarded the "Nobel" Prize in economics for their work on banking. Their work assumed the validity of the "loanable funds" model of how banks operate—as Bernanke said in his biographical note on the Nobel website, "banks and other lenders are themselves borrowers, since they must raise funds from deposits or in capital markets in order to lend".52F
And yet that model had been flatly contradicted years earlier by the Bank of England (McLeay, Radia, and Thomas 2014) and the Bundesbank (Deutsche Bundesbank 2017).

https://profstevekeen.substack.com/p/why-credit-money-matters-3b2