Money Creation and the Role of Banks

This chapter explores the misconceptions about money creation and how it actually works through the loanable funds theory. It discusses the creation of money by banks through loans, highlighting the distinction between individual banks and the banking system. The chapter also delves into the centrality of reserves in the monetary system and the role of the central bank's balance sheet.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app