Edwin Cannan vs Credit Creationism

March 2024 Forums General discussion Edwin Cannan vs Credit Creationism

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  • #85930
    jondwhite
    Participant

    What was Edwin Cannan's chief objection to 'credit creationism'? And was this the same as Hardy's?

    #131151
    ALB
    Keymaster

    That banks couldn't lend more than they had, as had once been generally understood, and that the old bankers' saying that  "every bank loan creates a deposit" had been misunderstood. All it meant was that a bank loan would encourage an expansion of business activity, which would bring in more deposits.Judge for yourself:http://www.theoryandpractice.org.uk/library/meaning-bank-deposits-edwin-cannan-1921It wouldn't be surprising since Cannan was one of Hardy's professors at the LSE.

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