Watch now | In the third episode into our exploration of money and what it means for ordinary people, we're asking Brian Romanchcuk, what is Modern Monetary Theory?
Really enjoyed this discussion. Brian clarified many issues I had in understanding 'money'. Particularly valuable was his description as money used to settle debt vs money as payment. The area where this issue arises is when a depositor makes an intrabank transfer as 'payment' of a debt. The bank has not transferred any reserves to settle this 'payment' as in interbank transfers so technically it is not a payment. Now I understand such transfers as settlement of debt. Phew!
Thanks for checking out the episode Tina!
Really enjoyed this discussion. Brian clarified many issues I had in understanding 'money'. Particularly valuable was his description as money used to settle debt vs money as payment. The area where this issue arises is when a depositor makes an intrabank transfer as 'payment' of a debt. The bank has not transferred any reserves to settle this 'payment' as in interbank transfers so technically it is not a payment. Now I understand such transfers as settlement of debt. Phew!