William White and Douglas Laxton, director of the Better Policy Project, had a discussion on 3 September focussed on how money is created in a modern economy. White stressed his strong support for the school of endogenous money that recognizes that banks create money out of nothing by making loans (a bank asset) and then crediting the borrowers deposit account with an equivelant amount of money (a bank liability). This capacity underlies the recurrent observation of costly boom and bust credit cycles, and the cumulative build up of debt and other economic imbalances that now threaten economic and financial stability. Laxton then led a discussion of how AI might, or might not, lead to significant increases in productivity that might alleviate such problems.