That leaves three unpalatable options: tax rises, default and inflation. The most likely is inflation—a danger looming over ...

Fiat money is a currency issued by a government that is backed by the authority and power of that government and its economy rather than a physical commodity. Historically, governments would mint ...

Forbes contributors publish independent expert analyses and insights. I write about economic policy for the 21st century. Although the Federal Reserve and other major central banks, even the Bank of ...

Renowned economist Richard Werner says popular textbooks miscast banks as mere middlemen and ignore their central "power to create money," an omission he claims distorts debates over credit just as ...

Capital markets channel investor funds into businesses and governments, driving economic growth, liquidity, and long-term ...

The dollar amount of U.S. Treasury securities held by the public in September of this year is $30.1 trillion. There is another $7.3 trillion held by governmental agencies including the Social Security ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation The key function of banks in the real world is endogenously creating (inside) money. But they do so facing solvency, ...

The looming fiscal crisis elicits an odd optimism that Congress will act in time to avert it. The likeness of Benjamin Franklin on $100 bills in Marple Township, Pennsylvania, in 2022. (Matt Slocum/AP ...