We think of creating money as the government's job. But actually, anyone can create money by writing an IOU. In fact most of the [ money…
Instead of directly targeting a specific rate of inflation, a [ central bank ] may target a fixed rate of nominal GDP growth, which is equal…
Banks create money by lending. Few understand this. Alice and Bob are on a desert island. Alice has $100, which she deposits in the Desert…
It's a bit counterintuitive that high interest rates prevent inflation. After all, doesn't a high interest rate mean that the [ central bank…
Naively you might think that the government just decides how many dollars there should be, and that's that. This is not true. Since [ IOUs…