Banking Is The Dark Matter of Economics (Part 2) - Bob Murphy & Steve Keen, DemystifySci #388

Economists Bob Murphy & Steve Keen come from very different camps. Today they sit together and pull back the curtain on how money really comes into being, piece by piece. Their exchange moves with a quiet intensity, uncovering the places where theory drifts from the world we live in. They trace the fault lines between stability and collapse, each from his own hard-won perspective. By the end, the familiar landscape of banking feels slightly altered, as if something hidden has stepped into view.Part 1: https://youtu.be/fKgiKFfnPqEPATREON https://www.patreon.com/c/demystifysciPARADIGM DRIFThttps://demystifysci.com/paradigm-drift-showHOMEBREW MUSIC - Check out our new album!Hard Copies (Vinyl): FREE SHIPPING https://demystifysci-shop.fourthwall.com/products/vinyl-lp-secretary-of-nature-everything-is-so-good-hereStreaming:https://secretaryofnature.bandcamp.com/album/everything-is-so-good-here00:00 Go! 00:02:01 – How Banks Really Create Money00:03:39 – Support & Merch Break00:07:34 – What Is Fractional Reserve Banking?00:10:06 – The 100% Reserve Ideal00:12:27 – Why the Textbook Model Fails00:15:00 – Base Money vs Bank-Created Money00:18:46 – The Textbook Story Falls Apart00:21:07 – Loans Create Deposits: The Core Mechanism00:22:44 – Why Economists Get This Wrong00:25:56 – Public Confidence as the Real Constraint00:29:07 – Reserves Are Lubricant, Not Fuel00:35:09 – Policy & Logic Undermine the Multiplier00:36:46 – Who’s Actually to Blame for Crises?00:39:18 – The Real Issue: Loan Quality & Targets00:41:00 – Diverging Philosophies on Ideal Systems00:44:12 – Modeling Real-World Lending Mechanics00:48:53 – The Austrian Full-Reserve Vision00:53:03 – Commodity-Backed Private Currency00:54:37 – Ending Centralized Monetary Control00:56:58 – A Regulated Credit Framework01:01:12 – Elastic vs Fixed Money Supply01:02:22 – Political Obstacles to Reform01:03:16 – Market Discipline vs Regulation01:05:08 – Limited Liability as a Core Distortion01:08:23 – Asset Purchases, Bailouts, and Moral Hazard01:11:26 – Policy Mistakes from Bad Models01:13:16 – Productive Credit vs Asset Inflation01:15:05 – Is Elastic Credit Even Necessary?01:17:35 – Fixed Money Supply Lending Mechanics01:19:15 – Closing Reflections#economics, #banking , #moneycreation , #macroeconomics , #financepodcast , #credit , #monetarypolicy , #austrianeconomics , #complexity , #capitalism , #inflation , #recession , #centralbanking , #goldstandard #physicspodcast, #philosophypodcast MERCH: Rock some DemystifySci gear : https://demystifysci-shop.fourthwall.com/AMAZON: Do your shopping through this link: https://amzn.to/3YyoT98DONATE: https://bit.ly/3wkPqaDSUBSTACK: https://substack.com/@UCqV4_7i9h1_V7hY48eZZSLw@demystifysci RSS: https://anchor.fm/s/2be66934/podcast/rssMAILING LIST: https://bit.ly/3v3kz2S SOCIAL: - Discord: https://discord.gg/MJzKT8CQub- Facebook: https://www.facebook.com/groups/DemystifySci- Instagram: https://www.instagram.com/DemystifySci/- Twitter: https://twitter.com/DemystifySciMUSIC: -Shilo Delay: https://g.co/kgs/oty671