How Banks Can Fail Even Though They Print Money

The liquidity and solvency constraints on the banker are peculiarly tight. They have to hold some liquid assets and they cannot survive a substantial fall in the value of assets. The reason is because… banks issue liabilities, they’re extremely liquid and they have very little equity. Banks have very little equity. You look at a […]

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Economics Deconstructed – Introduction – Part 1/9

Hello and welcome to the first part of this multi-part-series in which I explain the most basic concepts of our current economic system. I hope that at the end of this series you will understand the most important macroeconomic headlines, form your own opinion on how the global economy might develop and how these developments […]

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