“The Radical Middle is about getting beyond black and white. We challenge assumptions, ask better questions, and look for answers that don’t fit neatly on either side. Common sense shouldn’t be radical.“
In this the second episode of The Radical Middle Podcast, host Thomas McMurtry, and guest Ian Hall, LSM, of Hull & Hull LLP, discussed how banks create money. Thomas and Ian’s discussion focused on the modern fractional reserve system where banks can create new money when issuing loans. Thomas explained that unlike the historical gold-based system, banks today can convert loan accounts into client deposits on their balance sheets, effectively creating new money through digital systems. Thomas and Ian examined how this credit creation has shifted toward real estate investment in Canada, leading to concerns about economic productivity and resource allocation away from productive business investment. The discussion highlighted how this real estate-focused lending may be drawing talent and capital away from innovation and entrepreneurship, contributing to declining productivity and manufacturing in Canada.
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YouTube: https://www.youtube.com/watch?v=P5lCJFamDbY
Spotify: https://open.spotify.com/episode/5QjEImg3HHojGQO0y0iD8S?si=WFNA77dwTqiUR2nkW5wURw
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-radical-middle-podcast-episode-2-how-banks-create-money/id1895574044?i=1000766124594
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