2min chapter

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#303 – Steve Keen: Marxism, Capitalism, and Economics

Lex Fridman Podcast

CHAPTER

The Monetary Theory of Production in a Capitalist Economy

Money is the promise of a third party that we both accept to close our transaction. The liability for the banking sector is an asset for you and me, and assets includes money. When I hand you the money, you accept that as you've now got,. Rather than it's a bank promising to pay me something, it's not a bank promises to pay you something. And we exchange the promises of banks, and that's fundamentally money.

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