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.

• 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