Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Monday, 31 January 2011
Egyptians create their own money.
According to the BBC, a significant proportion of banks have shut down in the more seriously affected parts of Egypt due to the current political unrest. As a result, so claims the BBC, people have started exchanging IOUs.
Something similar happened during the Irish bank strike in 1978: people exchanged cheques.
It’s amazing how quickly a form of “peoples’ money” arises as soon as the supply of official money becomes inadequate. There is a PhD thesis there for someone.
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