Here is the first part of a new narrated visual tutorial:<\/p>\n
How Bank Loans Create Money \u2014 Explained Visually in 3 Minutes<\/a><\/p>\n This part covers the very basics, so you’re not likely to learn anything if you’ve followed this topic recently in the blogosphere or used the Macroeconomic Balance Sheet Visualizer<\/a>… but I hope it might be helpful to those less familiar with the topic. The format also introduces a little more interactivity — the last page lets you create and repay loans, pay interest, and default on loans. I believe the non-video format has more potential than I’ve used it for so far — for example, it could include built in gamification and quizzes.<\/p>\n Part 2 will show the central bank’s involvement — including how reserve requirements, capital ratios, and cash withdrawals do not limit economy-wide lending — and other related topics that distinguish the Post-Keynesian understanding from the mainstream.<\/p>\n Since the How the Economy Works<\/a> tutorial turned into a bit of a monster (at half an hour of narrated content plus lots of text-only additional details) I’m going to try making new tutorials<\/a> as short as I possibly can… 2-5 minutes per tutorial seems to me a good upper limit to attempt, but I am happy to have feedback on this (or anything EconViz related!)<\/p>\n","protected":false},"excerpt":{"rendered":" Here is the first part of a new narrated visual tutorial: How Bank Loans Create Money \u2014 Explained Visually in 3 Minutes This part covers the very basics, so you’re not likely to learn anything if you’ve followed this topic … Continue reading