Banking Is The Dark Matter of Economics (Part 2) - Bob Murphy & Steve Keen, DemystifySci #388

Economists Bob Murphy & Steve Keen come from very different
camps. Today they sit together and pull back the curtain on how
money really comes into being, piece by piece. Their exchange
moves with a quiet intensity, uncovering the places where theory
drifts from the world we live in. They trace the fault lines
between stability and collapse, each from his own hard-won
perspective. By the end, the familiar landscape of banking feels
slightly altered, as if something hidden has stepped into view.





Part 1: https://youtu.be/fKgiKFfnPqE





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00:00 Go!


00:02:01 – How Banks Really Create Money


00:03:39 – Support & Merch Break


00:07:34 – What Is Fractional Reserve Banking?


00:10:06 – The 100% Reserve Ideal


00:12:27 – Why the Textbook Model Fails


00:15:00 – Base Money vs Bank-Created Money


00:18:46 – The Textbook Story Falls Apart


00:21:07 – Loans Create Deposits: The Core Mechanism


00:22:44 – Why Economists Get This Wrong


00:25:56 – Public Confidence as the Real Constraint


00:29:07 – Reserves Are Lubricant, Not Fuel


00:35:09 – Policy & Logic Undermine the Multiplier


00:36:46 – Who’s Actually to Blame for Crises?


00:39:18 – The Real Issue: Loan Quality & Targets


00:41:00 – Diverging Philosophies on Ideal Systems


00:44:12 – Modeling Real-World Lending Mechanics


00:48:53 – The Austrian Full-Reserve Vision


00:53:03 – Commodity-Backed Private Currency


00:54:37 – Ending Centralized Monetary Control


00:56:58 – A Regulated Credit Framework


01:01:12 – Elastic vs Fixed Money Supply


01:02:22 – Political Obstacles to Reform


01:03:16 – Market Discipline vs Regulation


01:05:08 – Limited Liability as a Core Distortion


01:08:23 – Asset Purchases, Bailouts, and Moral Hazard


01:11:26 – Policy Mistakes from Bad Models


01:13:16 – Productive Credit vs Asset Inflation


01:15:05 – Is Elastic Credit Even Necessary?


01:17:35 – Fixed Money Supply Lending Mechanics


01:19:15 – Closing Reflections





#economics, #banking , #moneycreation , #macroeconomics ,
#financepodcast , #credit , #monetarypolicy , #austrianeconomics
, #complexity , #capitalism , #inflation , #recession ,
#centralbanking , #goldstandard #physicspodcast,
#philosophypodcast





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