Remember how new money is created when a bank makes a loan? Well, when someone repays the loan, the opposite process happens, and money is …
Economic Analysis, Theory
Full Reserve Banking Is No Bailout
A recent blog by Frances Coppola describes full-reserve banking as ‘the largest bank bailout in history’. In the interests of mutual …
IMF Working Paper Offers Support for Full Reserve Banking
We've been in a state of mild shock since Saturday, after discovering strong support for full reserve banking from a working paper by …
Including Money and Banks in Macroeconomic Models – Finally
From Emanuele Campiglio, New Economics Foundation: The absence of money, debt and banks from the overwhelming majority of “mainstream” …
Banks Behaving Better Shrinks the Money Supply
The population at large are demanding that banks behave better. In turn, this is encouraging some politicians to demand that banks behave …
If banks can create money, how come Northern Rock went bust?
Banks obviously can't create money, says Tim Worstall in his blog 'Ms Orr succumbs to the Positive Money loons', in response to Deborah …
Why Money Disappears When Loans Are Repaid
Much to my frustration, 99% of the discussion of, and public information about, fractional reserve banking concerns the …
'The Economist' Discusses Money Creation
An unnamed journalist at The Economist seems to have caught on to the significance of money creation by banks, after reading Richard …
BBC Radio 4 Analysis: Why Economics Is Bunk
Steve Keen has been on the Radio 4 "Analysis" programme on 4th June (at 8.30pm). Newsnight Economics Editor Paul Mason interviewed …