How Banks Create Money Out of Thin Air
Автор: How Money Really Works
Загружено: 2026-01-16
Просмотров: 1
Описание:
This video explains how banks create money through debt and why most money in modern economies exists because of loans.
Many people believe banks lend out existing money, but modern banking works differently. When banks issue loans, new money is created digitally at the same time debt is created. This process is central to how modern financial systems function.
In this video, you’ll learn how banks create money, how loans expand the money supply, why debt is encouraged in modern economies, and what this system means for economic growth and stability.
Understanding how banks create money is essential for understanding banking, debt, and the modern economy.
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