An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Mike I don’t think they are looking at “it’s a wonderful life” movie to get their knowledge (ie via figurative analogy) they have been taught this “banks lend the reserves” thesis in the academe... they are just relying on their training like the rest of us...
Their thesis is manifesting a fairly well known human cognitive error/fallacy called reification or hypostatization...
They are operating as if these regulatory Accounting abstractions termed “Reserve Assets” are real... and they are “lent out”... like you would lend somebody your (real) car ... “can I borrow a cup of sugar?” (sugar is real)... lend somebody a (real) power tool ...
You just have to correct the Economics Dept on this.... at the institutions in the academe where they are doing this...
They need to be challenged professionally as unqualified ... until they increase their ability to abstract properly the regulatory Accounting...
They have a very immature or under developed ability to abstract here ... they need to undergo a lot more rigorous training in abstraction as applied to the Accounting discipline..,.
Dispensing ever more figurative language like analogies and such at them isn’t working...
And all the MMT people can do when their figurative language methods don’t work is then spew conspiracy theories in their frustration of decades after decades of continued failure ..., so that isn’t working either..,
It’s a cognitive problem.., a cognitive deficiency...
Mike remember Kashkari in the last one he didn’t even demonstrate a minimal understanding of National income Accounting... he was saying that the people not going to movies were providing the savings etc..,
5 comments:
America the laughing stock.
Mike I don’t think they are looking at “it’s a wonderful life” movie to get their knowledge (ie via figurative analogy) they have been taught this “banks lend the reserves” thesis in the academe... they are just relying on their training like the rest of us...
Their thesis is manifesting a fairly well known human cognitive error/fallacy called reification or hypostatization...
https://en.wikipedia.org/wiki/Reification_(fallacy)
They are operating as if these regulatory Accounting abstractions termed “Reserve Assets” are real... and they are “lent out”... like you would lend somebody your (real) car ... “can I borrow a cup of sugar?” (sugar is real)... lend somebody a (real) power tool ...
You just have to correct the Economics Dept on this.... at the institutions in the academe where they are doing this...
They need to be challenged professionally as unqualified ... until they increase their ability to abstract properly the regulatory Accounting...
They have a very immature or under developed ability to abstract here ... they need to undergo a lot more rigorous training in abstraction as applied to the Accounting discipline..,.
Dispensing ever more figurative language like analogies and such at them isn’t working...
And all the MMT people can do when their figurative language methods don’t work is then spew conspiracy theories in their frustration of decades after decades of continued failure ..., so that isn’t working either..,
It’s a cognitive problem.., a cognitive deficiency...
Mike remember Kashkari in the last one he didn’t even demonstrate a minimal understanding of National income Accounting... he was saying that the people not going to movies were providing the savings etc..,
Completely unqualified for his position...
Is 'rigorous training' a figure of speech for flogging?
Sue, ,
Does he have anything for the Covid too?
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