Read The Times Australia

Daily Bulletin

Explainer: the real role of banks in money creation

  • Written by: The Conversation
imageMoney is much more than just bank notes and coins issued by central banks.EPA/Aaron Ufumeli

The phrase “banks create money” forms part of the popular discourse, but it conveys an erroneous representation of the banks' role in the money creation process.

The role of banks is primarily that of an intermediary between buyers and sellers in,...

Read more …

More Articles …

  1. It's fresh, it's exciting
  2. Staking a claim: a rationale for local art museums
  3. Hope, anger and courage – or why are conservatives so miserable?
  4. Four lessons for US and world as president finally gets what he wants: a free hand on trade
  5. Abbott spins tangled web of free speech and editorial judgement
  6. How do you know when your child is ready for school?
  7. Economic theories that have changed us: efficient markets and behavioural finance
  8. When monetary policy reaches its limits, what of fiscal policy?
  9. Pope Francis wants us to be 'ecological citizens', but how?
  10. Can we love happiness? Or do we then risk more sadness?
  11. The mystical stillness of Marina Abramovic in Sydney
  12. Nature's lubricant makes your body a well-oiled machine
  13. Why would the US spy on its allies? Because everyone does
  14. Family trees could pin down why racehorses are getting faster
  15. How did the turtle get its shell? Fossil discovery gives us a clue
  16. Why are we outraged about eating dog, but not bacon?
  17. The license plate as podium: Who speaks - you or the government?
  18. Obama and the N-word
  19. Greece and Russia get friendly but their pipeline is still more dream than reality
  20. Supreme Court's First Amendment rulings are nuanced, not at odds
  21. What happens to those left behind by a drug or alcohol-related death?
  22. How a US-Qatar takeover will take Formula 1 up a gear
  23. Do women gain a child and lose a tooth?
  24. Brazil and Venezuela's unpopular leaders remain friends – for now
  25. Napoleon rides high again in Waterloo coverage – he shouldn't
  26. Mallah caught the ABC bus to Q A
  27. Anti-immigrant walls and racist tweets: the refugee crisis in Central Europe
  28. Radicalisation on campus: why new counter-terror duties for universities will not work
  29. Our love of technology risks becoming a quiet conspiracy against ourselves
  30. Don't fear falling into a black hole – you may live on as a hologram
  31. How US gun control compares to the rest of the world
  32. Let's talk race: a teacher tells students not to be 'color-blind'
  33. It's all about the Hamiltons, baby
  34. Will states have time to react if the Supreme Court rules against the government in ACA case?
  35. California tackles water-energy interdependence by getting decision-makers to talk
  36. Why we need to save the Chief Operating Officer
  37. The case for Australian coal in India is weakening
  38. How life on Earth recovers after a devastating mass extinction
  39. Architecture: how public space in India was refined by Charles Correa and Nek Chand Saini
  40. How Hollywood-style rom-coms seduced France
  41. How to get primary school children into science? Enthuse their teachers
  42. Why 'illegal' migrants aren't violating state sovereignty
  43. Uber labour ruling in California could send shockwaves through the sharing economy
  44. How the new spending chief can tackle tax without being a prat
  45. Explainer: could Greece's debt and bailout plan be illegal?
  46. Why port privatisation plans are in deep water around the country
  47. Scary king cricket is a beautiful example of evolution at its best
  48. When there's meaning in mathematical mistakes
  49. ICC: sad lesson of lofty ideals trumped by reality repeats itself
  50. South Africa is failing to address malnutrition in its older people

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...

How Ecommerce Order Retail Fulfillment Services Improve Order Accuracy?

Why Order Accuracy Matters in Ecommerce Order Retail Fulfillment Services?  Order accuracy is one...