Old Heterodox Banking Debates — Brian Romanchuk

Banking and money is an area of ancient debates between post-Keynesians (and their fore-runners) and mainstream economists. Many of these showed up in my earlier book Abolish Money (From Economics)!, with the theme more focussed on money. Although I believe I need to touch on this topic, I want to keep it short. Partly because it appeared in another book, and partly because I am less and less convinced that these debates are that useful for discussing banking.

Note: Once again, this is a draft of a manuscript section from my banking book. It will be in a chapter on modelling banking.

Excellent summary of "exogenous" and "endogenous" as applied to "money." This is important for understanding the relationship of finance and economics, and it underlies a good part of MMT, The descriptive aspect of which involves modeling this relationship conceptually. That is to say, MMT as a theory provides an explanation of the relationship of finance and economics in terms of institutional arrangements. One could say that the mathematical aspect of the modeling  involved is provided by the accounting.

With these old debates somewhat covered, I will then discuss some of the “banking controversies” associated with Modern Monetary Theory.

Stay tuned.