MMT economist Steven Hail helps Christian understand the intricacies of a modern money banking system as they discuss the interplay of government spending, private sector transactions, reserve and bond accounts at the central bank and how these things impact on interest rates, plus the effect of quantitative easing.

(Originally published Mar 6, 2019)

To understand more on central banking, check out these episodes with Steven on government bond issuance:

Episode 30: https://www.patreon.com/posts/29621245 

Episode 31: https://www.patreon.com/posts/29829500 

And our episode with Sam Levey on endogenous money:

Episode 43: https://www.patreon.com/posts/35073683 

All our episodes with Steven Hail: https://www.patreon.com/posts/43083051