Economists Bob Murphy & Steve Keen come from very different camps. Today they sit together and pull back the curtain on how money really comes into being, piece by piece. Their exchange moves with a quiet intensity, uncovering the places where theory drifts from the world we live in. They trace the fault lines between stability and collapse, each from his own hard-won perspective. By the end, the familiar landscape of banking feels slightly altered, as if something hidden has stepped into view. Part 1: https://youtu.be/fKgiKFfnPqE PATREON https://www.patreon.com/c/demystifysci PARADIGM DRIFT https://demystifysci.com/paradigm-drift-show HOMEBREW MUSIC - Check out our new album! Hard Copies (Vinyl): FREE SHIPPING https://demystifysci-shop.fourthwall.com/products/vinyl-lp-secretary-of-nature-everything-is-so-good-here Streaming: https://secretaryofnature.bandcamp.com/album/everything-is-so-good-here 00:00 Go! 00:02:01 – How Banks Really Create Money 00:03:39 – Support & Merch Break 00:07:34 – What Is Fractional Reserve Banking? 00:10:06 – The 100% Reserve Ideal 00:12:27 – Why the Textbook Model Fails 00:15:00 – Base Money vs Bank-Created Money 00:18:46 – The Textbook Story Falls Apart 00:21:07 – Loans Create Deposits: The Core Mechanism 00:22:44 – Why Economists Get This Wrong 00:25:56 – Public Confidence as the Real Constraint 00:29:07 – Reserves Are Lubricant, Not Fuel 00:35:09 – Policy & Logic Undermine the Multiplier 00:36:46 – Who’s Actually to Blame for Crises? 00:39:18 – The Real Issue: Loan Quality & Targets 00:41:00 – Diverging Philosophies on Ideal Systems 00:44:12 – Modeling Real-World Lending Mechanics 00:48:53 – The Austrian Full-Reserve Vision 00:53:03 – Commodity-Backed Private Currency 00:54:37 – Ending Centralized Monetary Control 00:56:58 – A Regulated Credit Framework 01:01:12 – Elastic vs Fixed Money Supply 01:02:22 – Political Obstacles to Reform 01:03:16 – Market Discipline vs Regulation 01:05:08 – Limited Liability as a Core Distortion 01:08:23 – Asset Purchases, Bailouts, and Moral Hazard 01:11:26 – Policy Mistakes from Bad Models 01:13:16 – Productive Credit vs Asset Inflation 01:15:05 – Is Elastic Credit Even Necessary? 01:17:35 – Fixed Money Supply Lending Mechanics 01:19:15 – Closing Reflections #economics, #banking , #moneycreation , #macroeconomics , #financepodcast , #credit , #monetarypolicy , #austrianeconomics , #complexity , #capitalism , #inflation , #recession , #centralbanking , #goldstandard #physicspodcast, #philosophypodcast MERCH: Rock some DemystifySci gear : https://demystifysci-shop.fourthwall.com/ AMAZON: Do your shopping through this link: https://amzn.to/3YyoT98 DONATE: https://bit.ly/3wkPqaD SUBSTACK: https://substack.com/@UCqV4_7i9h1_V7hY48eZZSLw@demystifysci RSS: https://anchor.fm/s/2be66934/podcast/rss MAILING LIST: https://bit.ly/3v3kz2S SOCIAL: - Discord: https://discord.gg/MJzKT8CQub - Facebook: https://www.facebook.com/groups/DemystifySci - Instagram: https://www.instagram.com/DemystifySci/ - Twitter: https://twitter.com/DemystifySci MUSIC: -Shilo Delay: https://g.co/kgs/oty671