Thread by @saadmacro

I am compiling a basic reading list on the areas of modern #money & #credit, where mainstream #macro is poor & misunderstandings are common.

This is work in progress and I will add to the thread as I come across more.

Additions to the list most welcome!

1/n

First port of call, the @bankofengland's "Money Creation in the Modern Economy," which kills (still widely held, sadly) views of banks as intermediaries, money multiplier etc

bankofengland.co.uk/quarterly-bull…

2/n

Second, an old classic, still relevant today for understanding cross border financial flows and thinking carefully via T-accounts, Milton Friedman's "The Euro-dollar Market,"

research.stlouisfed.org/publications/r…

3/n

Sticking with the theme of capital flows, an important piece by Claudio Borio @BIS_org to shift the focus away from current accounts to gross financial flows

bis.org/publ/work525.h…

4/n

A major gripe: the widespread belief that savings "finances" investment. Savings and financing are only the same in a loanable funds world.

"Saving does not finance Investment: Accounting as an indispensableguide to economic theory," by Lindner

hdl.handle.net/10419/105966

5/n

The difference between "real" and "monetary" analysis, this workshop at @oenb has a good collection of papers and presentations

oenb.at/en/Calendar/20…

6/n

From the workshop above, this presentation by @PeterBofinger is particularly helpful on the main differences between real/monetary analysis

oenb.at/dam/jcr:e20887…

7/n

An application of monetary analysis to the savings glut hypothesis again by Prof Bofinger

voxeu.org/article/excess…

8/n

"The 'real' illusion...," by Borio et al. Pushing back against the notion that savings and investment determine real interest rates, although he could have gone further to explore the conceptual problems with the savings/investment worldview

9/n

voxeu.org/article/real-i…