In the video belowProfessor Dirk Bezemerat the University of Groningen andMichael Kumhof, a Bank of England Economist explain where money comes from in less than 2 minutes.
The Bank of International Settlements, which is often described as “the central banker’s central bank,” hasexplicitly statedthat money is primarily created by banks, and that this is the case throughout the developed world:“…the central bank is not the only issuer of money in an economy. The multiplicity… of issuers of money is a common feature in all developed economies. Commercial banks are the other primary issuers, their liabilities (i.e. commercial bank money) representing in fact most of the stock of money.”
Martin Wolf, who the New York Times Book Review called“As Grand And Important As An Economic Journalist Can Ever Become,” put it this way in the Financial Times: “The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending.”
