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 ...

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 ...

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, ...

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 ...