144 – Peter Stella on Debt, Safe Assets, and Central Bank Operations
Macro Musings with David Beckworth
00:00
The Importance of Money in Payment Systems
Banks are sending messages electronically at about 40% of the speed of light, and they're netting out. There's absolutely no correlation between changes in bank reserves and any other kind of macro number like credit or GDP. Payments have gone up by 10,000 times GDP has gone up since 1951. So we don't need any more money. We don't need more balances to make more payments.
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