Money in a Theory of Finance | Session 3

This is the third of three sessions to discuss the 1960 book Money in a Theory of Finance by John Gurley and Edward Shaw.

For this session, we will discuss chapters 4 and 5.

Book Description from Perry Mehrling's Money & Banking MOOC:

"This book was significant for bringing money back into economics in 1960, and emphasizing the importance of financial intermediation for economic growth. The language 'inside' and 'outside' money comes from G&S, as also 'gross money view' versus 'net money view'. Their opponents are the monetary Walrasians, mainly Don Patinkin. But they don't really take a payments or market-making view, do they? Instead they emphasize the role of banks as financial intermediaries between savers and investors."