Welcome
Welcome to Splitting Zeros, the blog that looks at how modern money is created and destroyed in the banking system. The material covered is accessible to anyone, whether a lay person or student. Professionals without much of an accounting background may find it useful too.
The purpose of this blog is to cover the mathematical and accounting principles rather than the systems, such as interbank payment systems, money markets and capital markets, involved. Simple examples are used to highlight the concepts involved.
The topics covered may also appeal to those learning Modern Monetary Theory but don't have an accounting background.
Start with Part 1:
Introduction
- Part 1. Introduction
- Part 2. The rules of money
- Part 3. Interbank transfers
- Part 4. Interbank settlements
- Part 5. How money is created
- Part 6. How money is destroyed
- Part 7. How banks earn money
- Part 8. How banks lose money
- Part 9. How banks go bankrupt
- Part 10. How debt circulates
- Part 11. How central banks work
- Part 12. How clearing works
- Part 13. How circulated debt is paid back
- Part 14. How banks fail
- Part 15. How governments borrow money
- Part 16. How governments pay back money
- Part 17. How quantitative easing works
- Part 18. How banks are bailed out
- Part 19. How banks are bailed in
- Part 20. How notes and coins circulate
- Part 21. Conclusions