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Posts by Sidd

link to Credit Theory of Money, Explained Simply

Credit Theory of Money, Explained Simply

The credit (or debt) theory of money posits that money originated as a system for accounting debts. In reality, it shares a lot with commodity theories of money.

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link to Why Banks are Important – 9 Reasons

Why Banks are Important – 9 Reasons

Banks should provide an important service - matching savings to investments. Today, they're vilified because they lost that role thanks to fiat money. We explain how.

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link to Fractional Reserve Banking: Benefits and Drawbacks

Fractional Reserve Banking: Benefits and Drawbacks

Bankers and economists make banking seem utterly complex today, but it is actually quite simple. Banks are meant to be intermediaries between people saving money and people spending or investing it....

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link to How Bitcoin Fixes the Cantillon Effect

How Bitcoin Fixes the Cantillon Effect

Fiat currencies have the Cantillon Effect, while Bitcoin has the 'Nakamoto Effect' - a term named after Bitcoin's anonymous creator, Satoshi Nakamoto. The question of why we need Bitcoin is a...

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link to What is the Inflation Fallacy, and Why Does it Matter?

What is the Inflation Fallacy, and Why Does it Matter?

Economists correctly believe that in theory and on average, rises in price do not cause a drop in purchasing power. But just like MC Escher's paintings, what works on paper doesn't always pan out in...

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link to 8 Reasons Why Money is Important – for You, and Society

8 Reasons Why Money is Important – for You, and Society

Money helps keep societies peaceful and individuals free. So why does everyone seem to hate it?

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About the Author

An independent researcher interested in how economics, finance, and markets affect normal people. I write about economics and money so that anyone can come to understand how monetary policy affects our daily lives. If you can't understand my writing over a beer on a Friday night, I haven't done my job. Studied the history and sociology of technology at the University of Pennsylvania. Spent 10 years working in technology and 5 years in finance.

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