This week I wanted to show you visually some of the effects we’ve been talking about over the last few weeks. One of the points…
Tag: credit
So why does all this matter? First of all, you need to think back to the conclusion drawn in this post: “Decisions about who to…
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…
It’s now been 16 weeks of posting every Friday, and I’ve reached the end of a series of posts setting out some fundamental concepts. I…
This is an extra blog post – it doesn’t fit into the regular flow of 500-word Friday blog posts explaining how the economy works and…
Over the last 2 weeks I have given a brief overview of financial assets and their vital role as the main form of saving in…
Last week I introduced financial assets, and pointed out that purchasing these assets is in fact a way to save. Most assets actually represent a…
This is going to be my final model (woop woop). I’m calling it Intermediateland, because in Intermediateland they’ve invented financial assets, and financial assets do…