Credit and Aggregate Demand
Credit plays a crucial role in aggregate demand, contrary to traditional economic models that overlook its impact. When one person lends to another, it shifts spending power, highlighting the volatility of credit as a component of economic activity. Historical data reveals a strong negative correlation between credit and unemployment, demonstrating the significant effects of credit fluctuations on the economy, especially during financial crises.In this clip
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Steve Keen: Marxism, Capitalism, and Economics | Lex Fridman Podcast #303
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