Economics stuff from facebook feed
Re: Economics stuff from facebook feed
steve keen explanation of money creation by banks
http://www.theaustralian.com.au/busines ... 838103822f
http://www.theaustralian.com.au/busines ... 838103822f
Re: Economics stuff from facebook feed
http://www.sciencedirect.com/science/ar ... 1915001477
Highlights
•
The three theories of how banks function and whether they create money are reviewed
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A new empirical test of the three theories is presented
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The test allows to control for all transactions, delivering clear-cut results.
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The fractional reserve and financial intermediation theories of banking are rejected
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Capital adequacy based bank regulation is ineffective, credit guidance preferable
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This is shown with the case study of Barclays Bank creating its own capital
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Questions are raised concerning the lack of progress in economics in the past century
•
Policy implications: borrowing from abroad is unnecessary for growth
Highlights
•
The three theories of how banks function and whether they create money are reviewed
•
A new empirical test of the three theories is presented
•
The test allows to control for all transactions, delivering clear-cut results.
•
The fractional reserve and financial intermediation theories of banking are rejected
•
Capital adequacy based bank regulation is ineffective, credit guidance preferable
•
This is shown with the case study of Barclays Bank creating its own capital
•
Questions are raised concerning the lack of progress in economics in the past century
•
Policy implications: borrowing from abroad is unnecessary for growth
Re: Economics stuff from facebook feed
http://www.abc.net.au/news/2015-08-26/f ... ts/6725118
he Washington Post ran an article last week reporting that 65 per cent of the richest people in Australia had amassed their wealth via political connections rather than via innovative businesses.
According to the quoted research, Australian residents are rewarded for their political connections about as much as Indonesian or Indian residents, with Colombia offering the biggest rewards. Notably, the Australian situation is in stark contrast to that of the US, where only 1 per cent of the billionaires reportedly made their wealth through political connections
he Washington Post ran an article last week reporting that 65 per cent of the richest people in Australia had amassed their wealth via political connections rather than via innovative businesses.
According to the quoted research, Australian residents are rewarded for their political connections about as much as Indonesian or Indian residents, with Colombia offering the biggest rewards. Notably, the Australian situation is in stark contrast to that of the US, where only 1 per cent of the billionaires reportedly made their wealth through political connections