By following the key principles that describe monetary movements, such as double-entry bookkeeping and the accounting equation, and by considering simple examples, it is possible to gain useful insights into how money is created in the banking system.

The double-entry system of bookkeeping plays a crucial role in money and banking in that it tracks monetary movements and ensures the accounting equation is always balanced.


I hope you found this blog useful and it has helped you understand modern fiat money and how it is created in the banking system.

If you have any questions, suggestions, or would like to contact me for any other reason, then please feel free to send me an email.

back to Part 20

Back to the home page