Friede Gard Prize Lecture 01: Banks,Money, and,Credit
I was awarded the Friede Gard Prize for Sustainable Economics in 2022.
After the award ceremony on October 13th, I gave a set of lectures and workshops. I didn't complete the entire set as planned, so I am now re-recoding them and posting one each week for the next couple of months.
In this lecture, I prove that credit--the annual change in private debt--is part of aggregate demand and income in a world in which banks originate both debt and money: and that's the world in which we live.
Neoclassicals insist on modelling a fantasy world in which banks are "financial intermediaries" between savers and borrowers, with the award of the 2022 "Nobel Prize" in economics to Ben Bernanke being the latest example of their complete detachment from reality.