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Banks Create Money out of Thin Air. What Could Possibly Go Wrong?

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How can a bank “create money out of thin air”? We must enter the magical kingdom of “fractional-reserve banking,” where deposits are turned into loans, loans are turned into money, and so on, to find out. Original Article: "Banks Create Money out of Thin Air. What Could Possibly Go Wrong?" [embedded content] Tags: Featured,newsletter

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How can a bank “create money out of thin air”? We must enter the magical kingdom of “fractional-reserve banking,” where deposits are turned into loans, loans are turned into money, and so on, to find out.

Original Article: "Banks Create Money out of Thin Air. What Could Possibly Go Wrong?"


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