Geld aus dem Nichts

Economics professor Mathias Biswanger explains the process of money creation. The recent financial crisis has made it clear that banks and their lending practices play a crucial role in today's economies. However, most people still do not see how this lending is connected to money creation. As long as we do not understand this, we cannot grasp the functioning of a modern economy. In his book, Mathias Biswanger examines banks as money producers: they do not lend out money that someone has previously deposited with them; rather, they create new money through lending. Thanks to the ability to create money, banks enable growth by financing investments without prior savings. The author also highlights the darker sides of the process: a large portion of the money created by banks.