Textbooks from 1955 Explaining 21st Century Finance

The video discusses the disconnect between macroeconomic theories and the real-world operations of money markets. It highlights how academic views often overlook the practical aspects of financial systems, treating them as mere 'plumbing'. The speaker emphasizes the need to reconnect theoretical tools with reality, noting that while textbooks have remained largely unchanged since 1955, the financial markets have evolved significantly. The goal is to bridge the gap between abstract economic models and the actual workings of modern financial systems.

What is the significance of reconnecting economic theories with the reality of modern financial markets?

Discuss the changes in the organization of financial money markets over the years.