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412 results
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
Misconceptions around Banking - Banking 101 (Part 1 of 6)
Recording of the Workshop “The collateral supply effect on central banking”, 04.02.2021, part of the "Next Generation Central Banking - Climate Change, Inequality, Financial Instability" conference by the Heinrich-Böll-Stiftung
NextGen Central Banking: The collateral supply effect on central banking
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
How money gets destroyed - Banking 101 (Part 6 of 6)
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
Do banks create money or just credit? - Banking 101 (Part 5 of 6)
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
What's wrong with the money multiplier? - Banking 101 (Part 2 of 6)
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
How much money can banks create - Banking 101 (Part 4 of 6)
Banking 101 is a series of 6 short videos that ask the following questions: How do banks work and how is money created? Is reveals common misunderstandings of money creation and the role of banks. Furthermore, the videos show how models taught in many introductory classes to economics (Econ 101) do not reflect those processes:
Part 1) “Misconceptions around Banking” questions common comprehensions of how banks work (savings = investments).
Part 2) “What's wrong with the money multiplier” states that the model of the money multiplies is inaccurate.
Part 3) “How is money really made by banks” explains the process of money creation, loans and inter-bank settlement.
Part 4) “How much money banks create?” asks what limits the money creation by banks and presents the difference between reserve ratio, liquidity ration, equity and refers to the inter-bank market.
Part 5) Explores the question if banks create money or just credit and especially refers to credit risks.
Part 6) Explains how money gets destroyed when loans are paid back.
Note: The videos refer to the UK monetary and banking system, some explanations don't apply to other banking systems, e.g. the reserve ratio.
How is money really made by banks? - Banking 101 (Part 3 of 6)
This panel was part of the conference "Next Generation Gentral Banking - Climate Change, Inequality, Financial Instability" 03. - 05.02.2021.
NextGen Central Banking: Central Banking Beyond Inflation
Central banks have once again proven to be the first line of defense in crisis-ridden times. With their far reaching actions they prevented the world from experiencing a collapse of financial markets on top of the severe health and economic crisis caused by Covid-19.
NextGen Central Banking: Central Banking and Climate change - A new era of monetary financing?
In both economics textbooks and public perceptions central banks are a fact of life. On the wall of my A-level economics classroom there was the Will Rogers quote “there have been three great inventions since the beginning of time: fire, the wheel, and central banking”, summarising how many economists view the institution. There is a widespread belief that there is something different about money which calls for a central authority to manage its operation, a view shared even by staunch free marketeers such as Milton Friedman. This belief is not without justification, since money underpins every transaction in a way that apples do not, but we should always be careful not to take existing institutions for granted and central banking is no exception. In this post I will look at the idea of private or free banking, where banks compete (and cooperate) to issue their own currency.
Whither Central Banks?
In this article, Perry Mehrling, a professor of economics at Barnard College, presents and discusses three theories of banking which are guiding bank regulation. These are credit creation theory, fractional reserve theory and debt intermediation theory.
Central Bank theories of Banking and Money
This panel was part of the conference "Next Generation Gentral Banking - Climate Change, Inequality, Financial Instability" 03. - 05.02.2021.
NextGen Central Banking: How the coronavirus almost brought down the global financial system
Shadow banking became one of the main features of modern market based financial capitalism and financial globalisation. Daniel Gabor locates this development in a Super-Cycle framework and sketches out opportunities to launch a new cycle that is green and just through financial regulation and publicly organised sustainable finance.
Shadow banking and financial market regulation
Central banking is anything but clear-cut. As this webinar with Benjamin Braun demonstrates, the standard view of central banks as independent public entities that govern financial markets and "print" money is at least partially misleading.
Central banking, Finance and Power
This book is about history of monetary economic thought. From the 18th century with Hume and Smith to the early 20th, the author explains the different schools of thought regarding the monetary theories and policies and specially the central banking theory.
Monetary Theory and Policy from Hume and Smith to Wicksell
How did the coronavirus almost bring down the Global Financial System? What effects does monetary policy have on inequality? What role do Central Banks have in the social-ecological transformation? How could Central Banks tackle climate change? What is Central Bank Digital Currency?
Next Generation Central Banking
John Christensen from the Tax Justice Network addresses the Modern Monetary Theory idea that governments don't need tax revenues if they want to spend money. Doing so, he sums up the main points made by MMT proponents and their critics, and shows how MMT can be reconciled with another progressive economic narrative: "Modern Tax Theory". While MMT made valuable contributions to the policy debate on fiscal policy, it misrepresents the importance of taxation as a political matter and as a way to generate public revenues. This is where MMT steps in.
The Magic Money Tree: From Modern Monetary Theory to Modern Tax Theory
This teaching pack focuses on the practice and real-world activities of central banks. It assumes students have a grasp of basic macroeconomic concepts already, and is therefore most suitable to be used at the end of introductory macro courses, or in more advanced macro or monetary economics courses.
The Practice of Central Banking
This self-paced free course by Perry Merhling guides you to his "Money View" approach that integrates the fields of economics and finance. The course can easily be understood by people interested people without technical economic knowledge or training as it is primarily a tool for analysis.
Economics of Money and Banking
This paper investigates how the concept of public purpose is used in Modern Monetary Theory (MMT). As a common denominator among political scientists, the idea of public purpose is that economic actions should aim at benefiting the majority of the society. However, the concept is to be considered as an ideal of a vague nature, which is highly dependent on societal context and, hence, subject to change over time. MMT stresses that government spending plans should be designed to pursue a certain socio-economic mandate and not to meet any particular financial outcome. The concept of public purpose is heavily used in this theoretical body of thought and often referred to in the context of policy proposals as the ideas of universal job guarantee and banking reform proposals show. MMT scholars use the concept as a pragmatic benchmark against which policies can be assessed. With regards to the definition of public propose, MMT scholars agree that it is dependent on the social-cultural context. Nevertheless, MMT scholars view universal access to material means of survival as universally applicable and in that sense as the lowest possible common denominator.
Modern Monetary Theory and the public purpose
The Great Recession 2.0 is unfolding before our very eyes. It is still in its early phase. But dynamics have been set in motion that are not easily stopped, or even slowed. If the virus effect were resolved by early summer—as some politicians wishfully believe—the economic dynamics set in motion would still continue. The US and global economies have been seriously ‘wounded’ and will not recover easily or soon. Those who believe it will be a ‘V-shape’ recovery are deluding themselves. Economists among them should know better but are among the most confused. They only need to look at historical parallels to convince themselves otherwise.
Origins & Emergence of the 2020 Great Recession in the US Economy
Karl Marx was the greatest champion of the labor theory of value. The logical problems of this theory have, however, split scholars of Marx into two factions: those who regard it as an indivisible component of Marxism, and those who wish to continue the spirit of analysis begun by Marx without the labor theory of value.
Use-Value, Exchange Value, and the Demise of Marx's Value Theory of Labor
This paper attempts to clarify how the European economic crisis from 2007 onwards can be understood from the perspective of a Marxian monetary theory of value that emphasizes intrinsic, structural flaws regarding capitalist reproduction. Chapter two provides an empirical description of the European economic crisis, which to some extent already reflects the structural theoretical framework presented in chapter three. Regarding the theoretical framework Michael Heinrich's interpretation of 'the' Marxian monetary theory of value will be presented. Heinrich identifies connections between production and realization, between profit and interest rate as well as between industrial and fictitious capital, which represent contradictory tendencies for which capitalism does not have simple balancing processes. In the context of a discussion of 'structural logical aspects' of Marx's Critique of the Political Economy, explanatory deficits of Heinrich's approach are analyzed. In the following, it is argued that Fred Moseley's view of these 'structural logical aspects' allows empirical 'applications' of Marxian monetary theories of value. It is concluded that a Marxian monetary theory of value, with the characteristics of expansive capital accumulation and its limitations, facilitates a structural analysis of the European economic crisis from 2007 onwards. In this line of argument, expansive production patterns are expressed, among other things, in global restructuring processes, while consumption limitations are mitigated by expansive financial markets and shifts in ex-port destinations.
The European economic crisis from 2007 onwards in the context of a global crisis of over-production of capital - a Marxian monetary theory of value interpretation
Global Social Theory is a large wiki-like project by Gurminder K Bhambra. Its central aim is decolonising and diversifying universities, production of knowledge, and social thought in general.
It represents a large online library divided into three parts: concepts, thinkers, and topics in/of social theory and decolonial thought. Every part comprises of short, introductory articles on an according theme. It may be helpful to give you a general overview (and a list of basic readings) on the most essential areas of social theory: caste, class, and race; civil society; racism; secularism; feminism and many others.
It may also allow students whose university curriculum in sociology, economics, or other social sciences lacks diversity to compensate for that.
Global Social Theory
In this podcast 'How Economic Theory and Policy Reinforce Racism' William Spriggs, the AFL-CIO’s chief economist, discusses the inadequacies of the pandemic economic rescue package and the influence of mainstream economic theory. He further explores how mainstream economic theory continues to fail everyone, especially Black communities, by disregarding history.
How Economic Theory and Policy Reinforce Racism
Usually, Critical Theory and Economics are, for better or worse, no longer seen to be in a continuum. This article by Lukas Meisner serves as an introduction to Critical Theory for all (heterodox) economists, who want to understand and explain what they can, otherwise, just state and describe.
Critical Theory for Heterodox Economists: Questioning the Premises of Supply and Demand
Modern Monetary Theory and Practice: An Introductory Text is an introductory textbook for university-level macroeconomics students. It is based on the principles of Modern Monetary Theory (MMT).
Modern Monetary Theory and Practice: an Introductory Text
Modern Monetary Theory (MMT) is a school of monetary and macroeconomic thought that focuses on the analysis of the monetary and credit system, and in particular on the question of credit creation by the state.
Modern Monetary Theory
What’s inflation? Why is it relevant? And is there an agreed theory about its roots and causes, or is it a contentious concept? That’s what this text is all about: We define what inflation actually means before we delve into the theoretical debate with an interdisciplinary and pluralist approach: What gives rise to it, what factors might influence it, and, consequently, what might be done about it?
Inflation in economic theory
The 2007-2008 financial crisis exposed the shortcomings of mainstream economic theory with economists unprepared to deal with it. In the face of this, a major rethinking of economics seems necessary and in presenting alternative approaches to economic theory, this book contributes to the rebuilding of the discipline.
Alternative Approaches to Economic Theory
Approaching the law of nature that determines all forms of economy. The bulk of economic theory addresses the economic process by setting out on a catalogue of aspects, seeking the laws in the aspects and hoping to get together a reliable view of the whole.
Economic theory, methodology, and secure foundations
Economics, Culture and Social Theory examines how culture has been neglected in economic theorising and considers how economics could benefit by incorporating ideas from social and cultural theory.
Economics, Culture and Social Theory
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