These should be two of the easiest questions to answer in economics; after all, money is the one thing that we all use in an economy—surely we know what it is,
and where it comes from?
Unlike almost all university lectures you've ever heard on 'What is Money?',
join us in discovering what money really is.
We all tend to think of a monetary exchange as something involving two people trading two
goods when in reality all transactions involve three parties.
All transactions are triangular, and when it comes to money in a capitalistic society, banks must be part of your economic analysis—leaving them out is crazy, but that is exactly what the computer models running our economy at the FED do.
Can you believe that? Why is that? Is money important to running the economy, or not?
In a capitalist society, banks are unique and create overwhelmingly nearly all the money in our society.
But how, and why is this necessarily important?
Find out on Emir Phillips - American Pragmatist.
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