Steve Keen: “Mythonomics”
The Great Simplification with Nate Hagens
00:00
The Indogenous Theory of Money
The bank of england has now very well articulated, which is i'm grateful for, because ten or 15 years ago, people didn't believe me when i was talking about that. The kean saw tatagardminski is that credit is part of aggregate demand and aggregate income. So the change in debt is literally a one for one contribution to demand right now. And of course, credit can be positive or negative. But if you have rising debt, credit is positive, adding to demand but subtracting from demand. That's what caused the financial crisis. It all comes down to differing marginal propensities to consume.
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