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Podcast: Debunking Economics - the podcast
Episode: The complete guide to the bond market
Description: In this episode, Phil and Steve take listeners on a guided tour through the mechanics of government bond markets — stripping away the myths, misunderstandings and textbook clichés that usually cloud the topic. Starting from a listener question, they explore why governments issue bonds in the first place, how deficits translate into reserves within the banking system, and why double‑entry bookkeeping is the only reliable way to understand what’s really happening behind the scenes.Steve explains that when governments spend more than they tax, they create deposits in private bank accounts and matching reserves for the...