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What's wrong with the money multiplier? - Banking 101 (Part 2)

http://www.positivemoney.org/ There's a lot of confusion about how banks work and where money comes from. Very few members of the public really understand it...
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The Money Chronicle
Issues dealing with money reform and changes to our monetary system
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▶ Money creation in the modern economy - Quarterly Bulletin article - YouTube

For the Bulletin article on money creation, see: www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf Film...
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“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves…  When a bank makes a loan to one of its customers it simply credits the customer’s account with a higher deposit balance. At that instant, new money is created…”

 

the relationship between reserves and loans typically operates in the reverse way to that described in some economics textbooks. Banks first decide how much to lend depending on the profitable lending opportunities available to them…It is these lending decisions that determine how many bank deposits are created by the banking system. The amount of bank deposits in turn influences how much central bank money banks want to hold in reserve (to meet withdrawals by the public, make payments to other banks, or meet regulatory liquidity requirements), which is then, in normal times, supplied on demand by the Bank of England

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BBC: UK QE has failed, says quantitative easing inventor

BBC: UK QE has failed, says quantitative easing inventor | The Money Chronicle | Scoop.it
Tweet Yesterday’s BBC article entitled UK QE has failed, says quantitative easing inventor, discloses a little known story behind the term “Quantitative Easing”.
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Bill Mitchell’s “Modern Monetary Theory – what is new about it? – Part 2 (long)”

Bill Mitchell’s “Modern Monetary Theory – what is new about it? – Part 2 (long)” | The Money Chronicle | Scoop.it
Mitchell brings the hammer down on mainstream economists and those within the Post-Keynesian school who have tried to reestablish their credibility by distancing themselves from orthodox thought post GFC.
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Bill Mitchell — Modern Monetary Theory – what is new about it? ~ Mike Norman Economics

Bill Mitchell — Modern Monetary Theory – what is new about it? ~ Mike Norman Economics | The Money Chronicle | Scoop.it
Retweeted Nathan Becker (@netbacker):

"Bill Mitchell — Modern Monetary Theory – what is new about it?"... https://t.co/7DEoqWi74M
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Stephanie Kelton: The Economy-Does More Government Help or Hurt [COMPLETE]

Published on Sep 19, 2014 Presented at the Kansas City Public Library, Plaza Branch on September 16, 2014. This is the complete program and includes Dr
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MMT: Taxes Are Sufficient But Not Necessary To Drive A Currency

Professor L. Randall Wray discussing ways of driving acceptance of a currency. MMT argues that taxes are the primary method: the government declares tha
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Modern Monetary Theory – what is new about it? – Part 2 (long)

Modern Monetary Theory – what is new about it? – Part 2 (long) | The Money Chronicle | Scoop.it
In yesterday’s Part 1 of this two-part blog – Modern Monetary Theory – what is new about it?
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Bond Economics: Book Review: Diagrams & Dollars

Bond Economics: Book Review: Diagrams & Dollars | The Money Chronicle | Scoop.it
Diagrams & Dollars: Modern Money Illustrated by J.D. Alt is a brief ebook that introduces the national accounts flow concepts used by Modern Monetary Theory (MMT).
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We won!! Modern Monetary Theory (MMT) got everything right...EVERYTHING!!

MMT correctly predicted the decline in interest rates following the S&P downgrade. It predicted that Quantitative Easing would not be hyperinflationary an
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American Monetary Institute- Abolish the Fed!!!!!

I give my endorsment for the American Monetary Institute and its policies. Thus far this seems to be the most practial means of transforming our debt base
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Martin Wolf, Financial Times: Stop banks from creating money (Positive Money)

Economy For Channel Special Analysis. Martin Wolf, Chief Economics Commentator of Financial Times speaks at the event Does Money Grow on Trees? at the hal
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Positive Money Campaign Launch - “QE isn’t working” Outside Bank of England

Positive Money Campaign Launch - “QE isn’t working” Outside Bank of England | The Money Chronicle | Scoop.it
Alternative Economics is about redefining economic theory starting from the initial question of what economics toda
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Richard Eastman on Social Credit. Usury and deflation cause defaults.

We suffer from too few FRN's(deflation) not too many(inflation). Prices are increasing due to engineered scarcity of control commodities, fear and speculation.
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Douglas Carswell MP Introduces Bill to Stop Fractional Reserve Banking

Douglas Carswell MP Introduces Bill to Stop Fractional Reserve Banking | The Money Chronicle | Scoop.it
Tweet A significant point in history happened at about 1.30pm this afternoon. Douglas Carswell MP announced a bill that would end fractional reserve banking.
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Public Money Creation – Neither Right nor Left, Just the Way Forward

Public Money Creation – Neither Right nor Left, Just the Way Forward | The Money Chronicle | Scoop.it
Tweet Jeremy Corbyn’s proposal for ‘People’s Quantitative Easing’ has helped get the debate on money creation into the mainstream.
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Live streaming Q&A - Independence and Monetary Reform

http://www.positivemoney.org/ Live streaming of Q&A session from London, with: Fran Boait, Josh Ryan-Collins and Prof Steve Keen. - will start at 8:30pm (U
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How Was Money First Created?

"The History of Money: Not What You Think" Written and illustrated by Heske van Doornen The Minskys - Levy Economics Institute, August 21, 201
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Modern Monetary Theory – what is new about it?

Modern Monetary Theory – what is new about it? | The Money Chronicle | Scoop.it
In a few weeks I am off to the US to present a keynote talk at the – International Post Keynesian Conference – which will be held at the University of Missouri – Kansas City between Sep…...
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Is Moody’s a criminal enterprise or just plain ignorant?

Is Moody’s a criminal enterprise or just plain ignorant? | The Money Chronicle | Scoop.it
I've written about Moody's before. You may know Moody's as one of the "Big Three" credit rating agencies that gave high grades to worthless securities, and helped start the Great Recession.
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Create money for people, not financial markets – Campaign launch

Create money for people, not financial markets – Campaign launch | The Money Chronicle | Scoop.it
Tweet About forty Positive Money supporters gathered on Wednesday 17th August outside the Bank of England to launch a new campaign calling for an end to quantitative easing in favour of alternative monetary stimulus measures.
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MMT Policies Apply To Any Size Government

Warren Mosler discussing the difference between political decisions over the size of the government, and economic decisions over how the government shoul
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ProfSteveKeen

ProfSteveKeen | The Money Chronicle | Scoop.it
Alternative Economics is about redefining economic theory starting from the initial question of what economics toda
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I've just signed this petition: Create money for people, not financial markets!

I've just signed this petition: Create money for people, not financial markets! | The Money Chronicle | Scoop.it
The Bank of England has announced that it will create £70bn of new money through its quantitative easing programme.
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MMT: The Fed And The Treasury Can't Be Independent

Professor L. Randall Wray on how the Federal Reserve cannot operate independently of the US Treasury (and this is true for any other country's treasury and ...
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