Emeritus Prof Christopher May on Nostr: npub1ly26m…qp3k0 So, banks can create credit (money) by finding willing borrowers - ...
npub1ly26mcp4r2yxs9fcsacegyxn6tu8pat7hlxlnk8fc2z573swk8qqlqp3k0 (npub1ly2…p3k0)
So, banks can create credit (money) by finding willing borrowers - while even Central Bankers seem to miss this sleight of hand, more recently a paper from the BoE did recognise & agree with Keen's argument.
The key thing is the money supply is no longer really in the Govt's control, and interest rates more by what would be needed to be borrowed to cover the position if a loan defaults, than a direct immediate causality - hence rates dropping while mortgage lenders see borrowers
So, banks can create credit (money) by finding willing borrowers - while even Central Bankers seem to miss this sleight of hand, more recently a paper from the BoE did recognise & agree with Keen's argument.
The key thing is the money supply is no longer really in the Govt's control, and interest rates more by what would be needed to be borrowed to cover the position if a loan defaults, than a direct immediate causality - hence rates dropping while mortgage lenders see borrowers