Message from @justkaus
Discord ID: 774544789181562881
The question has to be treated in two parts, due to a split in the way money is talked about in academic economics. She suggested that “money and banking” was treated differently from “macroeconomics”. Money and banking was seen as on the fringe somewhat, “a frivolous option”. Keynes said, when he was writing the General Theory, that he thought that what he was writing would revolutionise the way the world thought. He had a theory where “money permeated the entire economy”. In modern economics, though, the role of money is separated from the whole analysis.
She said that economics thinks of itself as uncovering universal truths rather than being based in the context of its time. For example, the quantity theory of money is based in a historical period where gold was a major factor.
When she was a student in the late 1950s, she said, it was widely understood that loans create deposits. Now students are told that deposits create loans, which is wrong.
Much of neo-classical economics “regard banks as glorified safes.” However, “banks do not lend money” she stated. They don’t have a pot of money that they are passing on.
It is the ability of banks to create money that led Keynes to say that investment came before savings.
During the Q & A session after her presentation at the conference, Prof Chick expanded upon her main points. To a question about whether some academics were being “bought off”, she replied that there is something that “seeps into the veins of academia” rather than people being deliberately “bought off”. Although some had been “bought off” she said, if you’ve seen the film, Inside Job.
There is also social pressure to conform, she said. “You are just not part of the gang” if you don’t go along with the dominant ideology.
> https://positivemoney.org/2013/03/why-dont-economists-understand-money-new-video/
@hororizon44575 this video felt one hour long, but I somehow finished it
So was a Keynes a socialist or free markets guy?
ether nor
...
maybe you can call him an non-marxism socialist
So what was the basic principle of his theory?
And isint the main function of banks to lend loans?
well thats the main point of the video and also keynes
think about it
if banks loan money where do the have the money from?
From deposits.......?
ähm deposits have them from where?
People
and they have them from banks?
No they get them from their salaries and shit
but you see the companys first need a credit bevvore they can invest with this credit they also pay thre workers which results in bank creates money
So where do you think money comes from and what is the purpose of banks?
money is created via credit
also depts is created that way
*debts?
the other side of money is debts
No you mis wrote it, so I asked
So what exactly is credit?
credit is giving out an paper which says can be exchanged at the bank against banknotes. (bank accounts are also like papers which can be exchanged against banknotes)
while at this process you get an claim for banknotes
But isint money also the same thing, but you can claim to exchange it for goods
the same thing as?
Credit
well there are different kind of money
Like they are both guarantees of sorts right....
banknotes =/= fiat money
Uhhh, what is general currency called?
Which we use daily
Trump stole votes from Kanye and split it
Kanye shoudve won
@justkaus its euro but wellthere are euro bank notes and also euro fiat money.
i would have german videos about it but well that does not help
Ok ok. Let's go to the main point