How Central Banks Lost Control Of The Money Supply

Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates · Sep 23, 2026 · 12m · transcript

For decades, the Federal Reserve and other major central banks managed the economy by adjusting interest rates to influence how much money flowed through the system. But as of September 2026, that playbook has fundamentally broken down. Lucas and Luna explore why the traditional link between policy rates and the actual money supply in the real economy has severed, leaving central bankers flying blind. We look at the structural shift from reserve-based banking to a liability-driven model, where banks create money based on demand for credit rather than regulatory constraints or excess reserves…