Summary

Current paradigm/ vision:

• Money is a limited supply resource
• "there's just not enough money" to fund social programmes, to speak of the immorality of government debt or of public spending "crowding out" the private sector.

But actually: IOU (I own you) an informal document acknowledging debt.

• Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits"
• role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind