Chapter
Why Credit is Volatile and Money is a Store of Value
2:52:50 - 2:57:37 (04:47)
The value of money increases when prices are falling and therefore serves as a good store of value. Credit, on the other hand, is volatile and can go from positive to negative, making it risky for investment purposes.
Clips
In this episode, the guest argues that credit has a significant impact on aggregate demand, contrary to neoclassical economics models.
2:52:50 - 2:53:56 (01:05)
Economics
Summary
In this episode, the guest argues that credit has a significant impact on aggregate demand, contrary to neoclassical economics models. The discussion explores the real-world effects of lending and the role of credit in economics as per the Bank of England's findings.
ChapterWhy Credit is Volatile and Money is a Store of Value
Episode#303 – Steve Keen: Marxism, Capitalism, and Economics
PodcastLex Fridman Podcast
The value of money increases when prices are falling, which incentivizes people to hold onto their money.
2:53:56 - 2:57:37 (03:41)
Money, Credit, Aggregate Demand
Summary
The value of money increases when prices are falling, which incentivizes people to hold onto their money. Credit plays a significant role in aggregate demand, but it can be volatile and can quickly shift from positive to negative.