Chapter
The Asset of Government Money Creation
31:19 - 35:31 (04:11)
Government money creation utilizes reserves as opposed to loans, and allows for money to be added to bank accounts through spending and welfare payments, leading to increased commerce.
Clips
The asset of private money creation is loans, while the asset of government money creation is reserves.
31:19 - 33:47 (02:27)
Money creation
Summary
The asset of private money creation is loans, while the asset of government money creation is reserves. When the government spends more money in welfare payments than it takes in from taxation, it puts more money in people's bank accounts, while when people take out bank loans, banks create more money.
ChapterThe Asset of Government Money Creation
Episode#303 – Steve Keen: Marxism, Capitalism, and Economics
PodcastLex Fridman Podcast
The creation of money is essential for economic growth and commerce to happen, but it can also lead to inflation and other negative consequences.
33:47 - 35:31 (01:44)
Money Creation
Summary
The creation of money is essential for economic growth and commerce to happen, but it can also lead to inflation and other negative consequences.