rationalskepticism.org

Bank of England wrote:Where does money come from? In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood. The principal way in which they are created is through commercial banks making loans: whenever a bank makes a loan, it creates a deposit in the borrower’s bank account, thereby creating new money.

Frances Coppola wrote:..it is a comprehensive and clearly-written guide...And it is controversial. It rejects conventional theories of bank lending and money creation

Frances Coppola wrote:But if there is one lesson that should be drawn from this, it is that fiat money systems simply do not operate in the way that classical economic textbooks describe.