DJP wrote:I don’t think

[dms]

DJP wrote:

I don't think anyone argues against this, so long as you're talking about the broad money supply, or if they do I've not heard it.The question is whether or not commercial banks can infinitely go on extending credit without eventually getting into trouble.

Not even Positive Money argue that  

Quote:

Or another question concerns the questions of the nature of economic crises in capitalism. Is the cause of these always and only to do with the money supply?

ive been listening to Yanis Varoufakis’ new book “Talking to my daughter about the economy” and he too describes money creation by commercial banks as “out of thin air”. A number of times, actually (maybe he’d be a better person to debate?) and he talks at length about how commercial banks collapse despite this. If anyone has the book and can help me out with the specific passage that’d be great. As I say, it’s an audio book so it’s tough.