Kumhof – banking theory fundamentally wrong – Financing by money creation not intermediation

Kumhof – financing through money creation – Recent model intermediateion of loanable funds theory misrepresents how credit is created in the real world loans -> deposits -> reserves “if this is a good business proposition i am going to create these funds” “this matters when you think about macroeconomic simulations especially when it comes to … Continue reading Kumhof – banking theory fundamentally wrong – Financing by money creation not intermediation