I’ve now, in three posts, given a basic (but reasonably complete) overview of how money creation actually happens in the real world. But what you’ve…
Category: Money
In the last couple of weeks we’ve seen that banks create money when they make loans, and that the only limitation on their ability to…
If banks create money simply by typing numbers into a computer, why can’t they create limitless money for themselves, and how can they go bust?…
To understand where money comes from, we first need to picture the banking system. All banks have an account with the Central Bank (for example…
Got any money in your pocket? Where did you get it from? Well most likely you got it from a cashpoint, but how did you…