Our Mission Oriented Finance conference explores how to direct funding toward what Hyman Minsky called “the capital development of the economy”, broadly defined to include private investment, public infrastructure, and human development. (See more here.)
But to understand how, we need to understand what money is and why it matters. After all, finance is the process of getting money into the hands of those who will spend it.New Economic Perspectives
Why Money Matters
L. Randall Wray | Professor of Economics, University of Missouri at Kansas City
2 comments:
Randy’s basic objective to quote from his 2nd last sentence is to “to push finance to promote both the private and the public interest”. OK. Here’s my suggestions.
1. Irresponsible lending would be much reduced if we banned all forms of state support for lenders, i.e. lender of last resort, TBTF and deposit guarantees where depositors choose to be lenders, i.e. choose to have their money loaned on.
2. To ensure that in the event of a lender going bust people who want to lodge their money in a totally safe manner are not hurt, set up “totally safe” accounts where money is lodged only at the central bank or invested in short term government debt. Those safe accounts could be run by government (e.g. via the post office) or the job could be delegated to commercial banks.
"Even if we could imagine that humanity inherited “manna from heaven” to get the monetary economy going—say, an initial endowment of a million dollars"
a bit non sequtir but FTR that is not how God designed the manna economy for Israel ie 'no stock of savings, rather all flows':
Exodus 16:
4 Then the Lord said to Moses, “I will rain down bread from heaven for you. The people are to go out each day and gather enough for that day.
(Ed: ie "no savings!")
In this way I will test them and see whether they will follow my instructions.
(Ed: ie 'I will see if there are any libertarians among them who will f it all up, watch this...')
17 The Israelites did as they were told; some gathered much, some little. 18 And when they measured it by the omer, the one who gathered much did not have too much, and the one who gathered little did not have too little. Everyone had gathered just as much as they needed.
19 Then Moses said to them, “No one is to keep any of it until morning.”
(Ed: no savings!)
20 However, some of them paid no attention to Moses;
(Ed. Hmmmmmm, I wonder which cohort were these people.....)
they kept part of it until morning, but it was full of maggots and began to smell."
Way to go libertarians!!!!!!
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