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Wed 18 Jul, 2007 04:39 pm
Hi,
I was wondering if anyone knows any sites that explain 'how money works'? What I'm looking for is something that explains how interest rates/inflation are calculated, what banks do, how 'new' money is 'made'.
I never did any economics at school some of the above is probably in completely the wrong terms, but because I don't really have a starting point to work from I don't even know what words I should be putting in search engines to find what I'm looking for!
Thanks
What country are you asking about:?
I'm from England so that would be most relevant to me. Is there really that much difference between nations? I though at a basic level it would all be quiet similar...
UK would be nice, but anything that could give me a grounding to start from would be good.
I don't know about the differences from country to country, but here are a couple sites you can look at. The first one is about countries. The 2nd one is
the United States Treasury.
http://www.infoplease.com/countries.html
http://www.treas.gov/education/faq/treasury/tours.shtml
Good luck and I hope you find what you are looking for.
A simple google search will retrieve this site (among many others)
http://wfhummel.net/
The US Federal Reserve Bank has lots of informative articles teaching you you how money works. A good starting point is here
http://www.federalreserve.gov/publications.htm
The Bank of England seems to have a similar page. I have only just Googled it for this post, so I don't know how informative it is. But I assume it should suit your needs, and if not you can stay with the Fed's resources. Money basically works the same in every country; only a few technicalities may be different. Anyway, here is the Bank of England link:
http://www.bankofengland.co.uk/education/index.htm
Good luck!
Thank you
Just been reading through a couple of links, they seem to be the sort of thing I was wanting. Some of it is a bit confusing though so I may be back in a couple of days needing some clarification on some of it!
Thanks again.
How Money Works
You can find "How Currency Gets Into Circulation," "Currency Processing and Destruction," "Currency Devaluation and Revaluation," Money Matters," "Spirit of the Nation," History of Colonial Money," and Decline and Fall of the Gold Standard" at
http://www.newyorkfed.org/publications/result.cfm?cmdBrowseType=Main&cmdBrowse=yes&ColName=topicid&ColVal=MO&table=pittopic .
Try looking up " Fractional reserve lending "
Here is a place to check
http://www.multiline.com.au/~johnm/bankcheats.htm
Of course it's ok for banks to do this, but you would end up in jail if you did it.