Description

Most people think banks lend money.
They don't. They create it.

I sit down with economist Steve Keen to explain how money, banking, and the Federal Reserve actually work. Our conversation tackles one of the biggest sources of confusion in economics:
where money comes from, what the Federal Reserve was designed to do, and why financial crises keep repeating—even when the tools change.

This episode is about mechanics, incentives, and systems.

We cover:

• Where money really comes from
• Why banks don't lend existing money
• How money is created when a loan is approved
• How this explains booms, crashes, and sudden financial collapses
• What the Federal Reserve is—and what it isn't
• Is the Federal Reserve public or private?
• Why it wasn't designed as a normal government agency
• What the Fed was never meant to fix
• Why stabilizing panic ≠ fixing incentives
• How boom–bust cycles really work
• Quantitative Easing explained without jargon

SHOW NOTES:

Steve Keen

Substack - Building a New Economics: https://profstevekeen.substack.com/  

Website: https://www.stevekeen.com/
Invite-Only: Dr. Steve Keen's Private 7-Week 'Rebel Economist Challenge'

Patreon:  https://www.patreon.com/ProfSteveKeen 

YouTube: https://www.youtube.com/ProfSteveKeen 

Books:  

Money and Macroeconomics from First Principles for Elon Musk and Other Engineers.: https://www.amazon.com/Money-Macroeconomics-First-Principles-Engineers-ebook/dp/B0FLWJ8LXY

Debunking Economics (Digital Edition - Revised, Expanded and Integrated): The Naked Emperor Dethroned: https://www.amazon.com/Debunking-Economics-Digital-Integrated-Dethroned-ebook/dp/B09LQ9JJYP 

• USA: https://www.amazon.com/dp/B0FLWJ8LXY
• UK: https://www.amazon.co.uk/dp/B0FLWJ8LXY
• Germany: https://www.amazon.de/dp/B0FLWJ8LXY
• FR ; ES ; IT ; NL ;JP ; BR ; CA ; MX ; AU

Forbes Articles: https://www.forbes.com/sites/stevekeen/?utm_source=chatgpt.com