Andrew Lainton — The Lending Power of Banks in Monetary Circuit Theory – Adding Treatment of Bank Capital

This may be a bit wonky, but it is important for those interested in MMT, MCT and Steve Keen, and SFC modeling, especially in light of recent rapprochement. Seems that Neil Wilson has provided a bridge, too. Encouraging developments that are leading toward a unified approach that MMT and MCT economists can agree upon.

Scott Fullwiler tweets:

stf18: @AndrewLainton very good. don't see why you have to suggest it's a critique of mmt instead of just calling it a contribution to the lit, tho'

stf18: @AndrewLainton i've done things that weren't in randy's book but i didn't refer to these as criticisms

stf18: @AndrewLainton it's stuff we've already known that's now laid out nicely thanks to you. that's good enough for me. thanks!

Read it at Decision, decisions, decisions
The Lending Power of Banks in Monetary Circuit Theory – Adding Treatment of Bank Capital
by Andrew Lainton

See also Andrew Lainton, The Point of Origin of State Money in MMT Theory