Where does money come from? reveals how, contrary to public perception, the bulk of today's money supply is created and allocated by commercial banks in their role as providers of credit.
This refreshing and clear exposition tackles fundamental misconceptions about money and banking, sets out how the bulk of today’s money supply is created and allocated by commercial banks, and explores important implications for financial stability and economic development.
The authors argue that this system is inherently unstable, with little effective regulation of how much credit is provided, or whether it is used for productive or speculative purposes. Based on detailed research and consultation with experts, including from the Bank of England, Where does money come from? reviews theoretical and historical debates on the nature of money and banking and explains the role of the central bank, the Government and the European Union. This second edition includes new sections on Libor and quantitative easing in the UK and the sovereign debt crisis in Europe.
Highly recommended for all – experts, students and the simply curious.
Authors: Josh Ryan-Collins, Tony Greenham, Richard Werner and Andrew Jackson.