Commercial banks create most of the money in our world when they make a loan. And still a lot of economists buy into this idea th bank serveis intermediary between savers and borrowers. So i put my money in the bank, i get three % interest from the bank. They loan it at six%. They keep 3%. And they're just an intermediary. In reality, they're ignoring the fact that 95% of the money is created by the banks.
Show Summary:
On this episode we meet with ecological economist and Professor in Community Development & Applied Economics and Public Administration, Josh Farley.
Money. What is it? Where does it come from? How is it created? How is it tethered to our biophysical balance sheet? What is on the horizon with our monetary system? How might we create and use money differently in the future during a source and sink contained system? Josh Farley explains it all - and explains how the links between money, energy, and the economy will become more central in our lives.
Click here to listen to Josh and Nate’s first conversation.
About Josh Farley:
Joshua Farley is an ecological economist and Professor in Community Development & Applied Economics and Public Administration at the University of Vermont. He is the President of the International Society for Ecological Economics.
For Show Notes and Transcript visit: https://www.thegreatsimplification.com/episode/29-josh-farley