PPT-Banks don’t lend money

they create it Deobfuscating monetary and banking terminology 7th Critical Finance Studies Conference CBS Copenhagen August 2021 2015 Ib Ravn Research Program on Organization and Learning . HSPM . 714 J50. How a depression can happen. If people take money out of circulation, a depression can happen. Demand does not keep up with Supply. These are total “aggregate” demand and supply. Not a technological failure. Victoria Chick. Note: ‘A Perspective’ not ‘The Perspective’. Big field with several approaches. Cannot cover everything. . ‘Post-Keynesian’. Joan Robinson, AEA meetings 1971 (where she gave the Ely Lecture, ‘The second Crisis in Economic Theory’ ) came to meeting called by Paul Davidson –scholars who took Keynes seriously. don’t. . lend. . money. , . they. . create. it: . Deobfuscating. . monetary. and . banking. . terminology. 7th Critical Finance . Studies Conference. CBS, Copenhagen, . August 20-21, 2015. Ib Ravn. I. Unchecked Stock Speculation. Stocks were artificially high.. Investors believed that the stock market would go up indefinitely.. Company stock became artificially inflated and bore little relation to the companies actual worth.. www.positivemoney.org/. . Plan for the talk. 1. Where does money come from? Analysis of the problem.. 2. . How the monetary system affects e. ight big public issues. . 3. Two solutions proposed by Positive Money. 1791: The First Bank of the US was established to hold the government’s $$, help the government to tax, regulate commerce, and issue a single currency. 1861: The Second Bank of the US was established to restore stability and order to the monetary system.. 30. Previously. Fiscal policy:. U. se of government spending [G] and taxes to influence the economy. I. ncreases in [G] and tax cuts are paid for by borrowing. Fiscal policy is not . perfect because of lags, crowding out, and savings adjustments.. Functions of Money . Medium of exchange. Used to buy and sell goods. Unit of account. Goods valued in dollars. Store of value. Hold some wealth in money form. Money is liquid. LO1. Money Definition . Problem. : Recession. . Tools of Expansionary Monetary Policy and usage. :. Reserve . Requirement . – . decrease. . (creates more . excess reserves . that may be loaned out & increases . Money: . http://. www.econedlink.org/interactives/index.php?iid=189&type=educator. the Fed: . http://www.stlouisfed.org/education_resources/in-plain-english-video/. What Makes Money Important?. © Annie Patton Personal Banking and Commercial Banks The Role of The Bank Opening a Bank Account Current Accounts Deposit Accounts ATM Machines Loans Internet Banking Night Safes Foreign Exchange The Monetary System: What It Is and How It Works Chapter 4, Macroeconomics , by N. Gregory Mankiw , 8 th Edition ECO62 , Udayan Roy Three Main Questions What is money? What is the role of a nation’s banking system in determining the quantity of money in the economy? l. Build up to the Crash. there were warning signs. Spring 1929- Markets (stocks) were jittery- world wide. March- Dow Jones drops but stabilizes (what is the Dow Jones Industrial Average? . Dow Jones. Money and its functions. Different money types. Modern banking. Money creation. kk. 2. ?. What is money?. It is a “symbol of success”, “a source of crime”, and it “makes the world go around”..