How do banks create money, and why can other firms not do the same?

Visit link

We have reached the point where 97% of the currency in circulation is created by the banks. Out of thin air. How is this possible? Easy: it’s a bookholding trick., as clearly explained in this article by Richard A. Werner in the International,Review of Financial Analysis.

Want to comment? You'll need to sign up or log in.

 

Sign up to our mailing list

Community Tweets

kiwanja
kiwanja said: So @RioTinto's 'Sustainability' page says they "work hard to leave a lasting positive legacy everywhere we work".… https://t.co/NA0EXXj93k Retweeted by Means of Exchange Tweeted on 27 May
Oxford Economics
Oxford Economics said: Do people drink more in hard times? Psychological theories suggest that alcohol consumption increases during recess… https://t.co/oYphpvxYTD Retweeted by Means of Exchange Tweeted on 19 May
Hélène
Hélène said: Fiji‘s barter system as Covid-19 hits economy leveraging Facebook https://t.co/5VddtOrlj1 Retweeted by Means of Exchange Tweeted on 15 May
Brave Like Harriet
Brave Like Harriet said: That Jeff Bezos is set to become the first TRILLIONAIRE because Amazon is doing so well during a global pandemic th… https://t.co/r9uEVlotqw Retweeted by Means of Exchange Tweeted on 14 May
kiwanja
kiwanja said: Due to uncertainly around COVID-19 we've had to make the difficult decision to delay the launch of our 2020 Digita… https://t.co/NoEehwDfDB Retweeted by Means of Exchange Tweeted on 06 May
PositiveNewsUK
PositiveNewsUK said: Community raffles are supporting small businesses in their darkest hour – and the idea is catching on https://t.co/sQZB8c585s Retweeted by Means of Exchange Tweeted on 04 May