Photo credit:   Jan Brašna

Money is a vital public utility, but it is far from the neutral commodity that orthodox economics would suggest. Around 97% of money currently in circulation in the UK is actually created by commercial banks. nef’s work examines how the monetary system actually works, to build understanding that both the production and allocation of money are socially and politically determined.

Key Facts

• Notes and coins issued by the Bank of England account for less than 3% of total money supply, down from 17% in 1948.
• Most macroeconomic models of the economy do not include banks or bank credit creation.
• Around 8% of lending by banks in 2010 went to productive investment.

Featured Work

Publication // December 12, 2012

Where Does Money Come From?

What is money? How is it created? How does it enter into circulation?

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