How_Money_Works_-_The_Facts_Visually_Explained

The money supply 86

Increasing money circulation 88

Banking reserves 90

Recession and the money supply 92

Recession to depression 94

Managing state finance 96

Government and the money supply 98

The central bank 100

Budget constraint 104

How tax works 106

Government borrowing 108

Public debt 110

Accountability 112

Attempting control 114

Reading economic indicators 116

Deciding on economic policy 118

Interest rates 120

Quantitative easing 124

The level of taxation 126

Government spending 128

How governments provide for

the future 130

Inflation 132

Balance of payments 136

International currency fluctuations 138

Managing state pensions 140

Why governments fail

financially 142

How governments fail: hyperinflation 144

How governments fail: debt default 146

Beverly Harzog (consultant and writer) is a consumer

credit expert and best-selling author. Her articles have

appeared in The Wall Street Journal, New York Daily News,

ABCNews.com, ClarkHoward.com, CNNMoney.com, and

MSNMoney.com. Her expert advice has been featured in

numerous media outlets, including television, radio, print,

and websites. 

Marianne Curphey is an award-winning financial writer,

blogger, and columnist. She has worked as a writer and editor

at The Guardian, The Times, and The Telegraph, and a wide

range of financial websites and magazines.

Emma Lunn is an award–winning personal finance journalist

whose work regularly appears in high profile newspapers such

as The Guardian, The Independent, and The Telegraph, as well

as a number of specialty publications and websites.

Contributors

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GOVERNMENT FINANCE

AND PUBLIC MONEY 84

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