Money & Banking


Money acts as a medium of indirect exchange. Banking represents the process through which most economies conduct most money transactions.

Money and banking combine as a subject too important to not understand.

Money plays an extremely important role in the operation of any economy. Banking provides the infrastructure and tools for the storing, transfer, and (regrettably) the creation of money. Yet, so few people understand the topics that make up the subject money and banking.

In this section we will examine some of the more complex elements in the topics of money and banking.

Creation of Money

You cannot fully understand the topic of Money and Banking without understanding how money gets created.

Monetary System

You cannot fully understand the topic of Money and Banking without understanding how money gets created.

Inflation - Deflation

Changes in the supply of money creates one of the most disruptive influences in market activity. Learn about artificial changes in the money supply and its effect on the economy.

Bank Limitations & Losses

A lot of misconceptions exist about the regulations that control the behavior of Federal Reserve member banks.

Perpetual Growth of Money

Using fallacious and convoluted math, some people argue that the money supply must grow perpetually to pay interest on borrowed money, to maintain stable prices, and prevent deflation. We examine those assumptions.

Money Not Debt

Somehow the idea of that debt equals money has become popular in some circles. This argument does not hold up under logical scrutiny.

Money Matters

The importance of money cannot be overstated. To not understand money and its role in the economy, amounts to not understanding the economy at all.

Money Fallacies

A collection of the many myths about money.

Monetary policy all over the world has followed the advice of the stabilizers.

It is high time that their influence, which has already done harm enough, should be overthrown.

F. A. Hayek, 1932