State of muddlement in money creation affairs

Despite the impressive self-confidence displayed in the pages of what has been called the ‘new consensus on money creation’, a crisis is brewing under the hood. The notion of ‘banks as financial intermediaries’ is polarising the endorsers of the ‘credit creation theory’ and resisting harmonisation. In this paper I merely point this fact out, which remains virtually unrecognised, and hint at its most likely causes. I also warn that if this debate is not settled soon, the pendulum of economic ideas may swing to any of the two competing theories of banking