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Boston University economist Perry Mehrling presents his 'money view' framework: money is not a thing but a system of interlocking promises (IOUs). Understanding money requires understanding the balance sheets of banks, the Fed, and the shadow banking system.
This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.
Canon
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Mehrling argues that the stated purpose of many financial institutions (serving customers, managing risk, providing liquidity) is the 'false self' — the actual function is often balance sheet expansion, regulatory arbitrage, or rent extraction.
Highlights
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Money is not a thing — it is a system of interlocking promises maintained by institutional infrastructure
Mehrling argues that most people think about money wrong. Money is not a commodity, not a government decree, and not a store of value — it is a web of promises (IOUs) that function only because institutions backstop the chain.Was this useful?