Forget the monetarists and the Keynesians, money is magic.
Most of us remember from when we were very young, being told by our parents that money does not grow on trees. No it doesn't, if you are a banker the stuff is even more magic that that. Anyone who knows how to do the trick can pull money out of the air. It is known as the Fractional Reserve Banking trick and it beats pulling a rabbit out of a hat any day. Ian Thorpe describes how it is done at Scribd.com - a better site for reading long documents.
Magic Money: Some People Pluck It Out Of The Air.
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Comments: 4
It is created by the imagination
It's created by the bankers' imagination.