More on how money is created
Debunking Economics - the podcast
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Understanding Interbank Dynamics and Money Creation
This chapter explores the intricacies of interbank transactions and their influence on loan issuance and interest rates, challenging common myths about cash reserves. It highlights the delicate balance banks maintain in managing loans and the implications of money creation, particularly in the context of cryptocurrencies and local currencies. The discussion also examines the interactions between government bonds, deficits, and the overall banking system, revealing the cyclical nature of money and its impact on financial equity.
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