Why is it that banks do not lend to real businesses? What caused the 2008 financial crisis? Why do modern macro-economic models so often fail? In this episode of the Marginal Babble Podcast I sit down with Dr Sheri Markose to discuss these questions and find out why so often economic policy fails in achieving its objectives. Sheri has been a Professor at the Essex University Economics Department since 2006 and has a PhD in Economics from the London School of Economics. Referenced Research Material: 1) Bank Lending To The Real Economy by finance-watch.org https://www.finance-watch.org/uf/bank-lending-to-the-real-economy/ 2) The great mortgaging, by Moritz Schularick, Alan M. Taylor & Oscar Jorda, 2014 https://cepr.org/voxeu/columns/great-mortgaging 3) Global Financial Stability Report, October 2008: Financial Stress and Deleveraging Macro financial Implications and Policy, 2008 https://www.imf.org/en/Publications/GFSR/Issues/2016/12/31/Global-Financial-Stability-Report-October-2008-Financial-Stress-and-Deleveraging-Macrofi-22027 4) Modeling Rational Players: Part I, by Ken Binmore, 2008 https://www.cambridge.org/core/journals/economics-and-philosophy/article/abs/modeling-rational-players-part-i/C7D2FE263BD21AAF0BAEF8856CEDA3FB 5) Multi-Agent Financial Network (MAFN) Model of US Collateralized Debt Obligations (CDO): Regulatory Capital Arbitrage, Negative CDS Carry Trade and Systemic Risk Analysis, by Sheri M. Markose, Bewaji Oluwasegun & Simone Giansante, 2012 https://repository.essex.ac.uk/3712/1/dp714.pdf 6) Banking on the State by Piergiorgio Alessandri & Andrew G Haldane http://qed.econ.queensu.ca/faculty/milne/870/Bank%20on%20the%20State.pdf 7) Papers by Sheri Markose Complexification of eukaryote phenotype: Adaptive immuno-cognitive systems as unique Gödelian blockchain distributed ledger, by Sheri Markose, 2022 https://www.sciencedirect.com/science/article/pii/S0303264722001022 Genomic Intelligence as Über Bio-Cybersecurity: The Gödel Sentence in Immuno-Cognitive Systems, by Sheri Markose, 2021 https://pubmed.ncbi.nlm.nih.gov/33805411/ 8) Complex type 4 structure changing dynamics of digital agents: Nash equilibria of a game with arms race in innovations, by Sheri Markose, 2017 https://www.aimsciences.org/article/doi/10.3934/jdg.2017015 9) Early warning of systemic risk in global banking: eigen-pair R number for financial contagion and market price-based methods, by S Markose, S Giansante, NA Eterovic & M Gatkowski, 2021 https://link.springer.com/article/10.1007/s10479-021-04120-1 10) Cantor’s Diagonal Lemma https://mathworld.wolfram.com/CantorDiagonalMethod.html 11) The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology by F. A. Hayek, https://www.abebooks.co.uk/9780226320946/Sensory-Order-Inquiry-Foundations-Theoretical-0226320944/plp 12) The White Paper by Satoshi Nakamoto https://books.google.co.uk/books/about/The_White_Paper.html?id=5BFDvAEACAAJ&source=kp_book_description&redir_esc=y 13) Network Effects On Cash Card Substitution In Transactions And Low Interest Rate Regimes by Sheri M Markose & Yiing Jia Loke, 2003 https://scholar.google.com/citations?view_op=view_citation&hl=en&user=iQeWUloAAAAJ&cstart=20&pagesize=80&sortby=pubdate&citation_for_view=iQeWUloAAAAJ:u-x6o8ySG0sC 14) The impact of quantitative easing on UK bank lending: Why banks do not lend to businesses? By Mahmoud Fatouh, Sheri Markose & Simone Giansante, http://repository.essex.ac.uk/24409/1/FatouhMarkoseGiansanteImpactofQEWhybanksdonotlendtobusi nesses1-s2.0-S0167268119300538-main.pdf 15) The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb https://www.goodreads.com/book/show/242472.The_Black_Swan Socials: Tiktok: https://www.tiktok.com/@maxwelldorey?lang=en Instagram: https://www.instagram.com/maxdorey96/ Twitter: https://twitter.com/MaxDorey1 LinkedIn: https://www.linkedin.com/in/maxwell-dorey-7958a4128/