Where’s all the money coming from?
Debunking Economics - the podcast
00:00
How to Model Demand in the Economy
In normal times, the bank of england says most of the money in the economy is created by banks when they provide loans. But if that's the case, i mean, that money does have to be paid back eventually. So en we need supply to expand. In military terms, the system won't expand unless banks lin more than te go back in repayments, or unless governments are unde deficit.
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