Money and finance: Services for production or appropriation?
نویسنده
چکیده
This paper considers an economy in which the financial system provides intermediary services for founded and unfounded assets. Founded assets have real investments as underlying, the unfounded assets have not. Money is used for real and financial transactions. In particular, the money supplied to the financial system may be used to honor the payoff promises of unfounded assets rather than being transmitted to real investment activity. Two economic policy conclusions are suggested: First, money policy should not be confined to the supply of money but has also to care for its distribution. Second, the creative potential of the economy should be redirected from financial innovation to the development of real investment opportunities.
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