How Money Works
The links below will tell you everything you need to know about how banks create money and how the modern monetary system works.
The money that banks create is the electronic money that flashes up on the screen when you check your balance at an ATM. Find out how it’s created every time a bank makes a loan.
The Technical Details
This section covers all the nitty-gritty details of money creation by banks. We cover the three types of money, how balance sheets work, how central and commercial banks create – and destroy – money and what is wrong about the textbooks taught in universities. Read more…
“Refreshing and clear. The way monetary economics and banking is taught in many – maybe most – universities is very misleading and this book helps people explain how the mechanics of the system work.”
- Professor David Miles, Monetary Policy Committee, Bank of England
Why our monetary system is broken, and how to fix it.
“Money is a social invention, indeed among the most important of all social inventions. At present the right to create money has been handed over to the private businesses we call banks. But this is not the only way we could create money and, as recent experience suggests, it may be far from the best one. Read this book with an open mind and you will understand why.”
- Martin Wolf, Chief Economics Commentator, Financial Times
Papers and videos from:
- The Bank of England
- The International Monetary Fund
- Lord Adair Turner, former chairman of the UK’s Financial Services Authority
- Other professors and experts in the monetary system
Join the Campaign!
Join the 25,218 of us who know that our money system needs fundamental changes if we want an economy that works for people, not banks.