Chris Dillow says that economics is like literature. Maybe it is, and maybe it isn't. But if it is literature, economics needs more science fiction. Paradoxically, imagining radically different worlds can help us understand better how the actual world works, as well as helping us consider policy alternatives.
Imagine a world where all borrowing and lending is banned. You cannot lend anyone money, whether you lend it at a fixed interest rate, or at 0% interest, or in return for a share of the profits. Neither individuals nor corporations (including governments) can borrow or lend.
How would monetary policy work in that world?