Tag Archives: interest rate policy

On the (ir)relevance of interest rates

Next week I will give a review of “Where does money come from?” by prof. Richard Werner and others. That book provides a critical analysis of how the banking system works and debunks several “myths”. Importantly it shreds the idea that central banks are able to control money creation by commercial banks through interest-rate policy and capital requirements. Continue reading On the (ir)relevance of interest rates