Rethinking Monetary Economics: The Crucial Role of Commercial Banks’ by Dr Matthew Sekerke (Hiddenite Capital Partners)
Contemporary thinking in economics treats banks and capital markets as two species of financial intermediation, ignoring the ability of commercial banks to create money when they extend credit. The consequences of bank credit creation for economic growth, investment, and monetary policy will be explored.
Matthew will discuss how the balance between banking and capital markets finance has shifted in the United States over the last several decades, its legislative and regulatory origins, and its consequences for the money supply, competition, and the distribution of income. Matthew will also propose a criterion of monetary neutrality as an orientation for monetary policy and discuss its implications for fiscal policy and bank regulation.