Modern Money : The State Can Do It

Where does money come from? Why is it usually scarce and in crises is it suddenly unlimited available? Where do some governments get hundreds of billions of euros, pounds or dollars? And why can't some euro states do that? Governments, central banks or banks - who actually creates the money and who lends it to whom? Will our children have to pay back this society's debt at some day?

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Table of Contents

Short Introduction to our Monetary System

Modern Monetary Theory describes the current state
Modern Money – The 5 Key Principles

15 Questions for Diving Deeper into the Topic

What is fiat money and why is it so stable?
What are the advantages of a fiat currency and what are the limits?
Why do we have two kinds of money and why are private banks allowed to make money?
How does deposit money emerge through lending? And how does it disappear again?
Is the bank rich because it can create an unlimited amount of deposit money?
If there are two separate monetary cycles – how does government spending make its way into the real economy?
What role do government bonds play in deficit spending?
What does the government’s money creation look like in the simplest case? For example, in Canada?
From Canada to the Eurozone – is government money creation really that easy? 10. How does the vulnerable Eurozone manage the COVID-19 crisis?
Why are government debts not comparable to other debts?
Do public debts need to be repaid? Should they be repaid?
When does inflation rise? And why is deflation a problem?
What is the neoclassical take on this topic? And why does credit money make such a big difference?
More about Modern Monetary Theory?