There is a lot of confusion about the role interest plays in the current monetary system. It is often suggested that the fundamental problem is not the banking sector’s ability to create money, but the idea that “banks create the money to make the loans, but don’t create the money to pay the interest on those loans”.
Frank Van Lerven
A lot of people can go their entire lives without asking themselves how money is created and where it comes from. On the other hand, as the Bank of England noted, many modern day economic textbooks provide a flawed description of money creation. In any case, the concept of money creation can be tricky to grasp.
The British inflation rate for September increased faster than expected to 1% – a two-year high – primarily due to rising prices for clothes, hotel rooms and petrol. While a weaker pound may not explain the latest rise in consumer prices, is the cost of living expected to increase in the future? And what does this mean for the Bank of England?
Global debt has more than doubled in the last 15 years; and according to the International Monetary Fund (IMF), it’s the highest it’s ever been.
A new report by the Institute for Fiscal Studies (IFS) shows that people in their early 30s are half as wealthy as people of the same age ten years ago.