Money and Banking

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At last we get around to introducing the subject of money! Here we will try to penetrate some of the mystery and confusion surrounding this ever-popular, but very difficult subject. Not the least of the difficulties has to do with deciding whether money "matters" or not, a question which continues to be hotly debated by academic economists even after more than two centuries of study.


  • To define "money"
  • To show how modern banking systems are responsible for the creation of the largest part of the money supply
  • To introduce the role of central banks in controlling the money supply
  • To initiate the debate over the role of money as a factor influencing the operation of the economy.

Copyright 1999 K.J. Rea