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Economic theory

Policy and the financial sector

Tax, spending, interest rates and banks, and the conflicts between them.

Start: What money is for

The 10 modules

Each module teaches one idea: a definition, how it works, and questions through the page. Take them in any order.

1What money is forName the functions of money and tell money from wealthConcept · 7 min · Free 2How banks create moneyExplain how one deposit becomes more money in the banking systemHow it works · 7 min 3Fiscal policySay what fiscal policy is and which way each tool pullsConcept · 6 min 4Monetary policySay what monetary policy is and who sets itConcept · 6 min 5The transmission mechanismFollow an interest-rate change through to inflationHow it works · 6 min 6Supply-side policyTell a market-based supply-side policy from an interventionist oneTell them apart · 6 min 7Automatic stabilisersSay what an automatic stabiliser is and name twoConcept · 6 min 8The budget deficit and the national debtTell a deficit from a debt, and cyclical from structuralConcept · 7 min 9Do macro objectives conflict?Weigh the conflicts between growth, inflation and the balance of paymentsDebate · 6 min 10Was financial regulation after 2008 worth it?Weigh the case each way on tighter bank regulationDebate · 7 min