Modern Money Mechanics Study Course

Overview

The Nature of Money

Currency vs demand deposits

M1, M2, etc. (updated info here, too)

Deposits, loans, and reserves

The money multiplier effect

How it limits (or doesn’t) money creation

Real vs theoretical reserve banking

Step-by-step example from the booklet

Calculations of how $1,000 leads to $10,000 in deposits

Demand for loans

Willingness of banks to lend

Central bank policies

Clarify common misinterpretations

Brief discussion of conspiracy theories

How the real system compares today

Changes since the booklet (e.g., post-2008 QE, near-zero reserves)

Money creation in the digital age

How central bank operations have evolved