How Is Money Created? Part II

This article aimed at firmly establishing a simple truth: that commercial banks create new money in our economy out of nothing. There’s no deeper mystery to it, and we must not allow our minds to be repelled from this plain truth. Because only then can we properly address the much more significant and far more consequential questions. Questions such as:

Of all the possible alternative ways in which we could create new money and allocate purchasing power, is our current system really the best?

How Is Money Created? Part I

Without resorting to lofty rhetorics and convoluted hypotheses, this two-part article demonstrates – using experimental data and empirical evidence – exactly how and by whom new money is created into the economy.