Banking professor Richard Werner ran the test on a real bank to settle where money comes from. Almost nobody watches him show the result

“Richard Werner, Chair in International Banking at Southampton, Zurich, February 2018. The textbook says banks take deposits and lend them on. The accounting says something else. Watch the section where he lays out the 3 competing theories side by side, then shows which one the ledger supports. A lectern, a conference badge, a dark screen behind him. Central banks published the same answer. The textbooks never changed.”

Click the link for the 14-minute video: (1) Mirren on X: “A banking professor ran the test on a real bank to settle where money comes from. Almost nobody watches him show the result. Richard Werner, Chair in International Banking at Southampton, Zurich, February 2018. The textbook says banks take deposits and lend them on. The https://t.co/M5gptzTYDK” / X

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

Leave a Reply

Discover more from Lighthouse Economics

Subscribe now to keep reading and get access to the full archive.

Continue reading