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Hi all, thanks for the positive comments last week. No I'm not in banking and I didn't do a thesis on banking. This isn't the sort of subject you get taught though. You need to proactively do your own research (or join a central bank!) I don't write for the Independent either! That'll be the...
Here is how money is created:
Firstly the government asks the central bank for some money, lets say £1 billion. The central bank creates the money out of thin air - in the old days they printed it but these days they just type it into a computer. Hey presto £1 billion of new money has been...