Monday , December 9 2019
Home / FT Alphaville / Are banks really magic money trees?

Are banks really magic money trees?

Summary:
In a wide-ranging attack on the economics profession published in the New York Review of Books, David Graeber, the anthropologist, paid particularly close attention to the concept of money.He pointed to Theresa May’s claim, during the UK general election in 2017, that “there is no magic money tree,” which was part of the debate on austerity and government spending:The truly extraordinary thing about May’s phrase is that it isn’t true. There are plenty of magic money trees in Britain, as there are in any developed economy. They are called “banks.” Since modern money is simply credit, banks can and do create money literally out of nothing, simply by making loans. Almost all of the money circulating in Britain at the moment is bank-created in this way.Graeber, reviewing a new book from Robert

Topics:
FT Alphaville considers the following as important:

This could be interesting, too:

Tim Harford writes My books of the year 2019

Miles Kimball writes Avi Loeb: Curiosity, Not Careerism in Science

Menzie Chinn writes Private nonfarm employment: BLS vs. ADP

Tyler Cowen writes Saturday assorted links

FT Alphaville
FT Alphaville is a free daily news and commentary service giving finance professionals the information they need, when they need it. In a world where market professionals are inundated with information there is a pressing need to edit and filter, and hopefully sow a few ideas along the way. That’s where the FT Alphaville team comes in.

Leave a Reply

Your email address will not be published. Required fields are marked *