Mainstream economists have a tendency to get enthralled by their theories and models, and forget that behind the figures and abstractions there is a real world with real people. Real people that have to pay dearly for fundamentally flawed doctrines and recommendations.
Let’s make sure the consequences will rest on the conscience of those economists.I would add policy makers. This is criminal malfeasance.
Lars P. Syll’s Blog
The euro — gold cage of our time
Lars P. Syll | Professor, Malmo University
1 comment:
More fundamentally, the problem is government privileges for private credit creation.
Why, for example, since the Euro is fiat for the Eurozone, may not all citizens have accounts at the ECB, the only place the Euro exists except for physical Euros (bills and coins)?
Because then the poor would not be forced* to lend (a deposit is legally a loan) to banks to lower the borrowing costs of the rich, the most so-called creditworthy?
Because fiat creation for the benefit of banks and other asset owners would be more difficult to justify?
*Or else be limited to bills and coins.
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