#RethinkBanks Campaign: Rethinking the Role of Banks in Economics Education
We live in a monetized economy but when it comes to learning about the role of money and banks, most universities are still teaching their students the equivalent of flat earth theories. Myths like the ‘loanable funds’ and ‘money multiplier’ models continue to dominate but are unable to explain many of the real-world phenomena we see happening around us; such as the great financial crisis of 2008.
Mainstream economics professors were unable to see the crash coming or provide adequate policy proposals for how to deal with its aftermath and this intellectual failing left a terrible legacy. In the UK alone; a UN expert described austerity as “entrenching high levels of poverty”, and wages are only now beginning to return to pre-crash levels.
Since jobs in powerful financial institutions like…