The New Money episode 4: “Debt and money creation”

GB In Het Nieuwe Geld, Reinjan examines our monetary system, how it works, where it gets stuck and how it will change in the future. In this episode of Het Nieuwe Geld, Reinjan Prakke seeks the answer to the question: what are debts and who creates them? How bad is it for people to be in debt and what about countries? Or is debt actually useful?

Debt and money creation

In Reinjan’s teenage years, his parents get into debt due to a rogue contractor and architect. He sees with his own eyes what that does to them. The debt stress then also settles in his system. But what exactly is debt? Who creates the money behind it?

In this episode, Reinjan talks to Dirk Bezemer, professor at the Faculty of Economics and Business Administration of the University of Groningen and Aerdt Houben, professor of economics at the UvA and director of the Financial Markets division at the Dutch Central Bank.

Bezemer explains the difference between debt that adds value and debt that doesn’t add value to the economy. Houben then explains that interest rates no longer function as an instrument for central banks to boost our economy and that they are therefore dependent on quantitative easing.


You can listen to this episode of Het Nieuwe Geld via the BNR site, or via all well-known podcast apps.

The New Money is made possible in part by Bitonic

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