...against fictions and other tall tales

Sunday, 17 January 2016

Stiglitz on credit creation by banks

For those who think that Joseph Stiglitz doesn't know that banks actually create credit:

"We are not in a corn economy where banks serve as an intermediary between farmers who have excess seed and farmers who want more seed. We are in an economy where banks actually create credit. And that makes a very big difference."

h/t: wonkmonk