Debunking Economics - the podcast cover image

Banks, reserves, lending and money supply

Debunking Economics - the podcast

CHAPTER

The Mechanics of Money Creation

This chapter examines how banks create money through loans rather than relying solely on depositor funds, highlighting the implications of excessive leverage during financial crises. It critiques traditional economic theories and misconceptions about reserve requirements, advocating for a reevaluation of banking practices and their impact on private debt.

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