Rethinking the role of banks

Within the context of crises, a number of questions have arisen with respect to the role of banks. There has been a wide-ranging discussion over reforms that have proven rather limited in their analysis. Heterodox economists, however, have shown to be more astute as to the specific problems confronting our economies, and have proposed innovative solutions. Indeed, the theory of endogenous money shows an enlightened and indestructible link between banks and economic activity that is particularly important for proposing needed reforms to the banking system.