If the main fallacy of Positive Money is based on the little known truth that banks can indeed create a form of money out of thin air, the next fallacy of PM ( and it is probably debatable which is the greater) is that money can be issued on a debt free basis. This fallacy is in fact based on the much better known truth that if governments create money they are creating their own debt or a liability for themselves.Modern Monetary Theory: Real Economics
“Positive Money” : A Fallacy Built on a Little Known Truth. (Part 2)
Peter Martin
3 comments:
Peter Martin has no idea. Contrary to his first sentence above, if there is one thing that Positive Money keep screaming from the rooftops, it's that commercial banks DO CREATE a form of money.
Yea shadow banking
Peter Martin's comment is pure nonsense. The Bank of England confirmed in their Quarterly Bulletin 2014 Q1 that Positive Money's research and analysis is indeed correct. Possibly Mr Martin would like to look at some actual evidence rather than perpetuating myths? [Sources: http://www.youtube.com/watch?v=ziTE32hiWdk http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneyintro.pdf and http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf ]
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