We’ve spent two weeks looking at fractional reserve banking, and I pointed out that although this is the model presented by textbooks, it bears very…
Tag: credit
Last week we added Fractional Reserve Banking to our “engine”, where the bank acts as an intermediary between savers and borrowers, keeping a fraction of…
Dynamicland has a neighbour, Multiplyland – and they’ve invented banks. It’s such a great innovation that Bob moved to Multiplyland, so he can put his…
Decisions about who to allocate credit to, and how much credit to allocate, are absolutely fundamental to the path the economy takes in the future.…
Last week we added productivity to our model, and discovered that this requires investment, and that investment requires credit. So this week we’re examining credit…
Last week I used a model of a very simple economy – cash only, no innovation, nothing ever changing – so that we could see…