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…
Tag: money
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…
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…
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…
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.…
We saw last week that to complete our model of Dynamicland we need to have a way for the money supply to increase to keep…
In the last 2 weeks we’ve seen that to have an economy with increasing productivity we need investment (which we’ve defined in economic terms) and…