Economics · Macro
Money & Banking
What money is (medium of exchange, unit of account, store of value), how banks create it by lending, why fractional reserves make banks fragile, and how deposit insurance and lenders of last resort keep runs from turning into panics.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: GDP & growth. Next: Central banks & interest rates. Follows Khan Academy 'Money, banking and central banks', Crash Course Economics #11 and the Bank of England's 2014 'Money creation in the modern economy'.Next: 1. What money is