Financing the Economy Course

Course Overview

This instructor-led live training is designed to provide participants to gain mastery on financing the economy. You will learn the fundamentals of financing the economy and with greater emphasis on the functionality and application to your work or study.

« Give them the power to collect the grain during those good years and to store it in your cities. It can be stored until it is needed during the seven years when there won’t be enough grain in Egypt. This will keep the country from being destroyed because of the lack of food. » (Genesis, 41,35-36)

In the absence of monetary creation by banks, the financing of the private economy would depend exclusively on the self-financing capacities and the goodwill of agents who are fortunate enough to entrust or lend their money to entrepreneurs. Such an economy would therefore face the risk of a shortage of investment, because owners can choose to keep their money instead of lending it. Monetary creation by banks makes it possible to cancel this risk of shortage of investors. Money lent by banks is like a loan without lenders, because banks lend money they have created for the occasion, not money that existed beforehand. Monetary creation can finance the economy even if there is a shortage of investors, it is enough that the banks take over. But an economy is then confronted with the risk of excess investment. If all we have to do is create money to finance all our projects, we risk funding too many projects at the same time. To benefit from sustainable prosperity, economies must navigate between these two pitfalls, too little investment, lack of private investors or of sufficient money creation, and too much investment, because of the exaggerated optimism of private investors or an excess of money creation.