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Home / Mike Norman Economics / How do banks actually create money? We explain — The Economist (video 1 minute)

How do banks actually create money? We explain — The Economist (video 1 minute)

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[embedded content]One minute. They get it right. Banks create new "money" simply by entries in accounts. No details of the process now, but at least they have the key point correct.The EconomistHow do banks actually create money? We explain

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One minute. They get it right. Banks create new "money" simply by entries in accounts. No details of the process now, but at least they have the key point correct.
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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