How Does Modern Money and Banking Really Work?

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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

Tags:

Financial system

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

University of Mannheim (Universität Mannheim)

For generations, the University of Mannheim has been preparing students to take on leadership roles in business, academia, and society. One of the university’s strengths in this task is its profile, which is characterized by the economic and social sciences. It is in these fields that the University of Mannheim has repeatedly been ranked as one of the top 20 European research institutions. Key focuses of Mannheim researchers include decision-making processes and elections, governance, regulation, competition and innovation, migration and multilingualism, and the culture of change. The campus surrounding Mannheim’s baroque palace is a place where bright minds from across the globe come together to learn, discuss, research, and prepare to make their mark on the world.

Original publication

Fiscal Policy and the Balance Sheet of the Private Sector

H. Gersbach, J. C. Rochet and E. L. von Thadden

Published in 2024

Beyond

A Personal Reading Recommendation