- Why money exists and how we measure it
- What affects how much money people hold
- Where money comes from and how banks can ‘create’ it
- The relationship between money, activity and inflation
- Who is borrowing and who is saving money
- The importance of borrowing to the economy and the credit crunch
WHY DOES MONEY EXIST?
This might sound an odd question to begin with. Surely it's obvious what money is – it's the notes and coins we carry around in our back pockets to buy goods & services in the shops, as well as the money we keep in our bank accounts. While that's true, there happens to be a lot more to defining money.
It wasn't always ...