Richard Werner’s Credit Creation “Experiment”: How Do Banks Create Money?
Summary by financialsurvivalnetwork.com
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Richard Werner’s Credit Creation “Experiment”: How Do Banks Create Money?
by Jonathan Newman Mises.org Richard Werner discussed three different views of banking during his appearance on the Tucker Carlson show: 1. The financial intermediation theory; 2. The fractional reserve theory (which includes the “money multiplier”); 3. The credit creation theory Werner claims to have empirically verified the credit creation theory by observing a bank making a loan. He rejects the other two theories. The financial intermediation…
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