Evening.
Thanks for the reply, and your dog is no doubt suffering from indigestion ... 8-) And I understand your current predicament.
How is Money Created?
A good question. I have to say that I've yet to come across a good book or articles that concisely explains the concept and the process - and presents it in reasonably simple language.
I'm not sure whether this is because (i) both the concept and the process are complicated (ii) the authors don't actually know the process mechanics, (iii) to present such information in an easily understood format might expose some uncomfortable truths .... 8-)
I'm still on my own personal voyage of discovery about aspects of both economics and banking. I attach links to a few resources that I've come across in more recent years.
I acknowledge some of the last sources listed have a left-ward lean. I include them only because they have provided me with some light on the ongoing left - right debate. I'm not trying to push one side or the other, nor am I going to get into any political debate online. I'll leave that to others.
Definitions and Explanations
There are a number of books available that might explain both the past Fractional Banking system and the more recent Modern Monetary Theory (MMT). The book link below might be of use. Suggest that you look through the online Table of Contents ("Look Inside") to see if it covers the specific elements that you're interested in.
https://www.amazon.com/Sovereign-Mon...ustomerReviews
Explanation of Fractional Reserve System
Again, where do you find a nice concise and easy-to-read source? I attach the link below because it is not complex, and has one decent diagram.
https://courses.lumenlearning.com/bo...reating-money/
Creating Money in the Modern Economy
Two links: The first is the link to the BoE article that was posted earlier, while the second is a short (related) video clip that talks about the creation of money. The same video clip is present on the NZ Reserve Bank website.
https://www.bankofengland.co.uk/-/me...rn-economy.pdf
https://www.bankofengland.co.uk/quar...modern-economy
Modern Monetary Theory (MMT)
Around 1970, some initial thoughts on MMT were slowly coming into being (e.g. Mosler). But it was probably at least 1995 before we saw the development and progressive deployment of Modern Monetary Theory (MMT).
https://en.wikipedia.org/wiki/Modern_Monetary_Theory
A Political Perspective
https://www.counterpunch.org/2018/01...netary-theory/
Use and Abuse of MMT
https://michael-hudson.com/2020/04/t...-abuse-of-mmt/
The following link has a good diagram illustrating basic flows.
https://www.elrincondelparquet.com/n...-theory-wrong/
US Federal Reserve video on Monetary Policy
The attached video clip in the first link below was made while in the middle of the QE2 round in the US. I include it only because the Feds position at that point in time suddenly turned around soon after [and this was well prior to Covid-19 making its appearance].
https://wallstreetonparade.com/2019/...o-wall-street/
https://dissidentvoice.org/2019/02/q...ic-about-face/
Bookmarks