The MMT Podcast with Patricia Pino & Christian Reilly cover image

#126 Dirk Ehnts: How Banks Create Money

The MMT Podcast with Patricia Pino & Christian Reilly

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Current Account Deficits Are Stuff. Surpluses

If we're runing a current account surplus, we are accumulating revenue from overseas. Some of that is likely held as foreign currency and foreign currency reserves. So what will these people do with the money? What will the banks do? You cannot find a straightforward answer.

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