How Does Modern Money and Banking Really Work?

Profile Picture of - Ernst-Ludwig von Thadden

Ernst-Ludwig von Thadden

Abstract information

In this video, ERNST-LUDWIG VON THADDEN explains the role of money and banks in a modern financial system. He explores how banks create and manage money, the interplay between central banks and commercial banks, and how this affects the real economy. The video also examines the explosion of central bank reserves, the importance of interest on reserves, and emerging challenges from digital currencies, stablecoins, and decentralized finance.

DOI:

https://doi.org/10.21036/LTPUB101224

Researcher

Ernst-Ludwig von Thadden is Professor of Economics at the University of Mannheim. His research covers corporate finance, capital markets, contract and game theory, and financial macroeconomics. He earned his PhD from the University of Bonn in 1991 and completed his habilitation at the University of Basel in 1995. Von Thadden has held visiting positions at Stanford, LSE, Imperial College London, and the Federal Reserve Bank of New York, and is a fellow of the European Economic Association and the European Corporate Governance Institute.

Institution information

University of Mannheim (Universität Mannheim)

The University of Mannheim is frequently cited as the “Harvard of Germany,” primarily due to its world-class reputation in business administration and economics. Centered within the magnificent Mannheim Palace, one of the largest baroque buildings in Europe, the university provides a unique architectural setting for its academic pursuits. It is highly regarded for its research-driven curriculum and strong ties to the corporate sector, consistently ranking as the top German institution for social sciences and business. With a focused profile and a highly international outlook, it remains a premier destination for future leaders in finance, politics, and academia.
University of Mannheim (Universität Mannheim)
Cover Photo of - University of Mannheim (Universität Mannheim)

Original Publication

Fiscal Policy and the Balance Sheet of the Private Sector

Hans Gersbach,

Jean‐Charles Rochet,

Ernst‐Ludwig von Thadden

Published in

Book Recommendation

1177 B.C.: The Year Civilization Collapsed

Eric H. Cline

1177 B.C. reexamines the collapse of the Late Bronze Age. Eric Cline shows how invasions by the “Sea Peoples,” combined with drought, earthquakes, revolt, and disrupted trade, brought down civilizations from Greece to Egypt. Highlighting their interdependence, he explains how this interconnected world fell into a centuries-long dark age, setting the stage for classical Greece.

Citation

Ernst-Ludwig von Thadden, 

Latest Thinking, 

How Does Modern Money and Banking Really Work?, 

https://doi.org/10.21036/LTPUB101224, 

Credits:

© Ernst-Ludwig von Thadden 

and Latest Thinking

This work is licensed under CC-BY 4.0