Crisis, central banks and democratic control: the building blocks for change
Crash Course Economics
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Understanding the Dual Nature of Money in Capitalist Economies
The chapter explores the intricacies of money in capitalist economies, distinguishing between public money issued by central banks and private credit money created by the banking system. It emphasizes the critical difference between the profit-driven money creation of banks and the public control objectives of central banks in shaping monetary policy. The discussion also touches on the evolution of central banking practices, especially in response to crises like the COVID pandemic, and the challenges in balancing central bank independence with democratic oversight.
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