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Just Money Profiles
Morgan Ricks, Co-Editor

Morgan RicksMorgan Ricks is Professor of Law at Vanderbilt University Law School. He studies financial regulation. From 2009-10, he was a senior policy advisor and financial restructuring expert at the U.S. Treasury Department, where he focused primarily on financial stability initiatives and capital markets policy. Before joining the Treasury Department, he was a risk-arbitrage trader at Citadel Investment Group, a Chicago-based hedge fund. He previously served as a vice president in the investment banking division of Merrill Lynch & Co., where he specialized in strategic and capital-raising transactions for financial services companies. He began his career as a mergers and acquisitions attorney at Wachtell Lipton Rosen & Katz. He is the author of The Money Problem: Rethinking Financial Regulation (U. Chicago Press 2016).

Winter 2020
Banking: Intermediation or Money Creation

Contributors: Morgan Ricks, Marc Lavoie, Robert Hockett, Saule Omarova, Michael Kumhof, Zoltan Jakab, Paul Tucker, Charles Kahn, Daniel Tarullo, Stephen Marglin, Howell Jackson and Christine Desan, Sannoy Das

Banking: Intermediation or Money Creation
M. Ricks, What’s at Stake in Debates over Bank Money Creation Mechanics?

January 23, 2020

Morgan Ricks, Vanderbilt University

“[T]he familiar controversy as to how and by whom bank-deposits are ‘created’ is a somewhat unreal one.” So wrote John Maynard Keynes near the start of his 1930 Treatise on Money.[i] Keynes asked whether deposit balances can be created “actively” by banks or only passively by depositors “on their own initiative.” He thought it was obvious that banks can create deposit balances actively, albeit only within practical limits. Keynes acknowledged that active deposit creation—i.e., crediting deposit accounts in the process of lending or investing—tends to “diminish the reserves” of the bank as newly created balances are “paid away to the customers of other banks.”

Podcast
MDM 2018 Plenary Session: The Public Option and The Narrow Bank (TNB)

Recent work identifies money as a utility or infrastructural service, suggesting the government’s obligation to provide access and to equalize compensation paid to those holding deposits. Innovative proposals for redesign argue that the central bank should provide transactional services directly to individuals or, alternatively, to large depositors.

Presentation and Comment

Morgan Ricks – Vanderbilt University Law School
Commentator: Jeremy Stein, Harvard University (formerly Governor, U.S. Federal Reserve)
James McAndrews – TNB Chairman and Chief Executive Officer
Commentator: Morgan Ricks