Towards an ecological macroeconomics
As many have argued, modern macroeconomics has proved itself spectacularly unsuited to anticipate and understand the crisis. This is no wonder, considering that the majority of models – including the macroeconometric models of the main central banks – treat money in an unrealistic textbook way and don’t even consider the existence of private banks, which, instead, are the major players in the process of creation and allocation of credit in the economy, as nef’s recent “Where does money come from?” brilliantly explains.
July 9, 2012