?”Benes and Kumhof describe this perception of banks as mere intermediaries between savers and borrowers as the hallmark of someone who doesn’t understand banking.” (Steve Keen, 12 November 2012).
Anyone who has read Mellor, Graeber, Ingham, will find nothing new here, but very interesting to read it in an IMF paper. The intermediary hypothesis is the one that is for the most part taught in Irish universities. The assumption drips from every mainstream opinion piece you care to read on money, banking, credit and debt.
IMF Working Paper, “The Chicago Plan Revisited”, Jaromir Benes and Michael Kumhof. WP/12/202.