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Finch's avatar

Talks of unlearning things? The amount of money in circulation will always be relevant to a central bank, whose levers at the end of the day basically just move the machinery of fiat money. I work with data science, and it's almost unfathomable to me that we'd want to decrease the fidelity of such a basic metric.

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Spencer's avatar

The biggest error in the history of the world is that banks loan out deposits (that they are intermediaries). Not so. Deposits are the result of lending/investing, not the other way around. All bank-held savings are un-used and un-spent, lost to both consumption and investment, indeed to any type of payment or expenditure. That is the sole source of Alvin Hansen's secular strangulation, not robotics, not globalization, not demographics, not monopolization.

The demarcation between 1961 and 1981 was due to the end of the "monetization of time deposits". Everything that has happened was predicted in “Should Commercial Banks Accept Savings Deposits?” Conference on Savings and Residential Financing 1961 Proceedings, United States Savings and loan league, Chicago, 1961, 42, 43

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