A section of Rujjwal's Notebook
Where Does Money Come From?
On how new money actually enters the economy, and why markets behave like weather.
Has the amount of money in the world always been what it is today, or has it grown? And if it’s grown, where did the extra come from? Gold isn’t multiplying and the earth isn’t getting bigger, yet the money in circulation keeps climbing. The answer starts with a bakery and a bank loan.
Read the pieceWhat is money, really?
A $20 bill, four neighbors, and a question that gets stranger the longer you sit with it.
Suppose there is only one $20 bill in an isolated town, and Alice has it. By noon, that single bill has paid for a bike repair, a week of groceries, a mowed lawn, and dinner for four. Eighty dollars of real work and real goods, changing hands on twenty dollars that never multiplied.
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