Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Your Bank Account Grows When Rates Rise
In this episode of Fexingo Business, we dismantle the myth that central banks control the money supply through reserve requirements. Lucas and Luna explore how modern banking actually creates money through lending, using the Federal Reserve's shift to Interest on Reserve Balances as the key turning point. We look at why the traditional money multiplier model died in the mid-twenty tens, and what happens when commercial banks choose to park trillions in safe government securities rather than lend them out. The conversation anchors on a specific structural change: how paying interest on…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.