How Banks Create Money When They Lend

The prevailing theory of banking for the past century holds that banks function as intermediaries, collecting deposits from depositors and lending them out for interest. This view is maintained, with minor differences, by all neo-classical schools of economic thought regardless of ideological bent. Austrians, Monetarists, and New Keynesian economists alike operate under the assumption that commercial banks merely lend out…

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Charlie Silva, CPA

Charlie Silva, CPA

139 Followers

Corporate accountant and former auditor with degrees in philosophy and accounting.