Steve Keen's DebtWatch No 31 February 2009: "The Roving Cavaliers of Credit" | Steve Keen's Debtwatch - 2 views
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Thus rather than credit money being created with a lag after government money, the data shows that credit money is created first, up to a year before there are changes in base money. This contradicts the money multiplier model of how credit and debt are created: rather than fiat money being needed to “seed” the credit creation process, credit is created first and then after that, base money changes.
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Argues against the standard view of fiat-money creation by government and in favor of a credit-money view where banks drive the growth of the money supply.
