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Understanding bank money through a quantum macroeconomic theory of credit. Some theoretical considerations on microcredit

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  • Desogus, Marco

Abstract

Reframing risk assessments of microcredit, this paper expands on quantum macroeconomic conceptions of money, output and income to argue that production is endogenously financed. Building on the works of Schmitt, Cencini and Rossi, the conceptual logic of quantum monetary theory traces the origins of a (micro)firm’s finances to its consequent production. Production is then a self-sustaining system, and (micro)firms should not, in fact, dependent on worthiness decision made by banks for credit and funding. With especial focus on microfinance (and microcredit specifically), the socio-economic system requires restructuring to accommodate understandings of production as endogenous and microcredit as sustainable. This includes reforming national accounting practices to accurately represent possibilities of insolvency, themselves much reduced by the recognition of production as endogenous.

Suggested Citation

  • Desogus, Marco, 2020. "Understanding bank money through a quantum macroeconomic theory of credit. Some theoretical considerations on microcredit," MPRA Paper 114367, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114367
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    References listed on IDEAS

    as
    1. Clower, Robert W, 1977. "The Anatomy of Monetary Theory," American Economic Review, American Economic Association, vol. 67(1), pages 206-212, February.
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    More about this item

    Keywords

    quantum-economics; theory of money emissions; economic system; financial intermediation; microcredit;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P44 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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