Rethinking Economics is building a diverse movement of people who challenge, interrogate and renew the practice, teaching and application of economics. Our purpose is to create economic influencers who will expedite the creation of economies around the world which serve people and planet. These influencers, whether they be economists, academics, business-leaders, teachers, or policy-makers, will be equipped with the skills they need to overcome the challenges of the 21st century. As part of this purpose, we are campaigning to reform economics education to ensure it is critical, based in the real world and draws on a plurality of perspectives.
Banks play a major role in our economy, yet we know that in economics courses the teaching around the role of banks in the economy, and in particular in the creation of money, often isn't based in the real world. Neither does it draw on a plurality of perspectives to encourage critical assessment of their role. In fact, many economics courses teach models of banks that neither give students a useful understanding of how they work, nor resemble the real-world evidence in research by central banks and numerous academics.
Students from across the Rethinking Economics movement are submitting letters to their universities calling for a rethink of the teaching of the role of banks in their economics education. An example of the letters they are sending to their universities can be found
here. What many of us are taught in our economics degrees is not based on real-world understanding of banks' role in the monetary system or economy. We believe this poorly equips aspiring economists to work with and in the financial sector. It also has consequences for the wider economy, including poor regulation and under-informed policy decisions.
We are calling on economists, academic and professional institutions and civil society organisations to lend their support to the students' calls for a rethink of the role of banks in economics education. If you support our calls for an education of the role of banks based on the real-world, please add your name to our open letter below. Rethinking Economics will publish this open letter in the first week of November and on social media under: #rethinkbanks