Economics Learned: The Magic Checkbook

Sometimes, class, a banker masquerades as an economist and sometimes as a magician. And, like now, he can sometimes roll himself up into all three. Voila! The magic check book. Today’s lesson.

Today, money is rarely printed, but rather comes out of a very special checking account at the central bank (Federal Reserve, ECB, BOJ, Bank of England etc.) that nobody puts any money into.