Computational Challenges in Macroeconomics, Thomas Sargent (New York University, USA)

[@nthperson]

What is fundamental to a model that accurately describes and analyzes what is occurring in the real world of people is a recognition that politics dictate economic outcomes (i.e., the distribution of income and wealth). Historians, including economic historians, have provide the details of how systems of law and taxation have always resulted in the redistribution of income and wealth from producers to non-producer "rentier" interests. The extent to which the laws and modes of taxation fail to publicly capture rents from all sources, relying instead on the taxation of earned income flows, on actual capital goods, and on commerce, determines whether income and wealth is justly distributed or ends up concentrated into the hands of a small rentier elite. This is the existing system in every society, each society differing by degree only in this respect.

[@waikanaebeach]

33:00 - Banks don't work like that. Bankers know this so does the BoE, Bundesbank etc. They create and destroy money by the mere act of lending and receiving payment. They need reserves for liquidity to settle transactions and capital to cover shortfalls in asset mark-to-market/defaults.

[@alexandrosloukas3797]

Tommy's the Man

[@AbrahamZamudio]

At about minute 32, he mentions something about a book called statistical banking theory, someone will have the name of the reference or author

[@romnyyepez]

27:16 Applying some ideas to a two "polar" models of the GFC: multiple equilibria (bank-runs) and moral hazard (adverse effects of bailing out banks). 40:25 Moral-hazard