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Podcast: Market Depth
Episode: How Banking & Money “Printing” Actually Works | Frances Coppola
Description: On today's edition of "Boiler Room," Alfonso Peccatiello is joined by Frances Coppola to explain today's banking system and debunk the theory that money is "printed".Frances discusses the creation of money in the modern economy and how the money supply expands and contracts. We then explore the bank lending process, a bank's equity and what almost everyone gets wrong about bank reserves.Does government fiscal spending increase the money supply or just recycle it? Are bank reserves lent to other borrowers? What components comprise the total money in...